Nvidia Stock After Pullback: Is the AI Rally Still Early?
Analyst Dan Ives says the AI revolution is only in its '3rd inning,' raising the question of whether Nvidia's dip is a buying opportunity.
Nvidia shares have pulled back from recent highs, but at least one prominent Wall Street analyst argues the artificial intelligence boom that has powered the chipmaker's historic run is nowhere near finished. Wedbush Securities analyst Dan Ives describes the current moment as the "3rd inning" of the AI revolution, suggesting the bulk of the growth cycle still lies ahead for companies at the center of AI infrastructure buildout.
Nvidia has long been the dominant supplier of the high-powered graphics processing units that underpin AI model training and inference, making it arguably the most direct beneficiary of enterprise and hyperscaler spending on AI. Every major pullback in the stock over the past several years has ultimately proven to be a buying opportunity for investors willing to hold through short-term volatility, a pattern that bulls point to as a reason for confidence now.
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The central debate on Wall Street is whether Nvidia's extraordinary valuation already prices in years of future growth, or whether the scale of AI capital expenditure still being deployed justifies further upside. With cloud giants and sovereign governments continuing to announce large GPU procurement plans, demand signals remain strong even as competitive pressures from rivals and custom silicon efforts by major customers begin to mount.
For retail and institutional investors alike, the pullback forces a familiar calculation: is the dip a discounted entry into a multi-year secular trend, or a warning sign that peak enthusiasm has passed? Ives' framing — that only three innings of a nine-inning game have been played — implies the market may be underestimating the duration and magnitude of AI-driven hardware spending still to come.
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