Benzinga - by Shanthi Rexaline, Benzinga Editor. Nvidia Corp (NASDAQ:NVDA) reported stellar second-quarter results that sent the overbought stock to record territory.
Commenting on the results, Wedbush analyst Daniel Ives said he sees the results as the “best barometer for AI demand.”
‘Drop The Mic' Moment: Godfather of AI Jensen Huang and Nvidia delivered in “homerun fashion,” said Ives in a note. The results and guidance were a “drop the mic” moment that will have a ripple impact on the tech space for the rest of the year, he said.
“This is an unprecedented demand that we are seeing before our eyes in the AI Gold Rush,” the analyst said. The October quarter revenue guidance of $16 billion, which is notably above the $12.6 billion consensus, and the “quickly rising whisper numbers on the Street” will ignite a tech rally, he said, adding that the rally will continue into the rest of the year.
“We view these results and guidance as a historical moment for the tech sector speaking the tidal wave of AI spending now on the horizon over the coming years,” Ives said. The analyst expects software, digital media, big tech and chip companies to be major beneficiaries of this spending.
AI Beneficiaries: “We are now in the use case study phase and build-out stage of AI which ultimately is setting up for a massive cycle of spend,” Ives said.
The analyst sees Nvidia and Microsoft Corp. (NASDAQ:MSFT) as the best barometer for AI spending. He named the following companies to benefit from the massive cycle of spend:
- Nvidia
- Microsoft
- Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL)
- Apple, Inc. (NASDAQ:AAPL)
- Oracle Corp. (NASDAQ:ORCL)
- Palantir Technologies, Inc. (NYSE:PLTR)
- MongoDB, Inc. (NASDAQ:MDB)
- Snowflake, Inc. (NYSE:SNOW);
- Salesforce, Inc. (NYSE:CRM)
- Advanced Micro Devices, Inc. (NASDAQ:AMD)
- C3.ai, Inc. (NYSE:AI)
In after-hours trading on Wednesday, Nvidia shares soared 7.66% to $507.24, according to Benzinga Pro data. The Technology Select Sector SPDR Fund (NYSE:XLK) tacked on 1.40% to $173.35.
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