Wedbush analyst Dan Ives is doubling down on his bullish AI stock calls, arguing that investors focused on short-term valuation metrics risk missing out on what he sees as ‘the fourth industrial revolution.’
In a wide-ranging discussion about the sector on the Basis Points podcast published on February 12, Ives was particularly optimistic about Tesla (NASDAQ: TSLA) and Nvidia (NASDAQ: NVDA).
“The two best physical AI players in the market are Tesla and Nvidia…. I don’t think there’s a question,” Ives said.
First, the analyst emphasized that Tesla’s story is no longer just about vehicle deliveries. Rather, the company is now a vertically integrated AI platform built around autonomy, robotics, and data. With Tesla, he argued, CEO Elon Musk is building ‘the biggest AI company in the world brick by brick,’ with stakes and synergies spanning ventures such as SpaceX and xAI.
Although the market often fixates on robotaxi delays or quarterly delivery fluctuations, the bigger story thus lies in 10 million vehicles generating real-world driving data, autonomous software development, and AI-driven robotics.
Nvidia to become a $10 trillion company?
Ives also used Nvidia’s example to dismiss comparisons between today’s AI stock boom and the dot-com bubble. Namely, he pointed to surging demand for Nvidia chips and what he described as supply-demand imbalances globally as evidence that AI investment is grounded in real infrastructure buildout.
Asked whether Nvidia could double again and reach a $10 trillion valuation, the analyst did not dismiss the possibility. In fact, he described Nvidia as being ‘four years ahead’ of competitors in AI chips, with AI growth not yet reaching its full potential.
With the chipmaker valued at around $4.5 trillion and trading at roughly 25 times forward earnings, he also argued that consensus estimates are too conservative and understate the long-term potential.
AI is building a new economy
The AI wave, the discussion went, is not just about semiconductors or hyperscalers. Now, it’s spreading into healthcare, financial services, energy, and beyond.
“We’re building out a new economy. You’re in Vegas in the 1950s. It’s sand. There’s nothing there. You’re in Dubai 30 years ago. That’s where we are…. We just happen to be living in a fourth industrial revolution.”
Accordingly, Ives emphasized that transformational technology shifts require a long-term lens to properly assess.
In conclusion, he acknowledged that competitors will emerge and market share dynamics will evolve, but maintained that Nvidia and Tesla will remain the key benchmarks in the sector.
Featured image via Shutterstock
