Dan Ives Says the AI Trade Is Only in the "Third Inning." Should Investors Stay Long AI Stocks?
The AI megatrend may still be young, but the focus for businesses is shifting from buying chips to monetizing AI across infrastructure, cloud, and software.
Overview
Last month, Dan Ives, partner and senior managing director at Yorkville Ives, said in an interview on CNBC that the artificial intelligence (AI) revolution is still in its early stages, comparing it to the third inning of a baseball game. He said Nvidia (NASDAQ: NVDA) remains at the center of the revolution, calling its processors the key technology driving the AI boom.
Image source: Getty Images.
Ives was not talking about hype on social media. He was pointing to real businesses. In his July comments, he highlighted CoreWeave (NASDAQ: CRWV) and Cisco (NASDAQ: CSCO) as "pieces of the puzzle" for the AI trade. CoreWeave is an AI cloud provider that builds data centers around Nvidia's graphics processing units (GPUs) and custom infrastructure, and rents that compute capacity out to its clients. Cisco sells networking hardware and software that connect servers and clusters within data centers and enterprise networks. Their recent results tell us that the spending in the AI build-out is spreading from chips into cloud platforms and into the plumbing that moves data.
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Originally published at www.fool.com.