Hardware makers, including Nvdia (NVDA) and Apple (AAPL), are facing a very high degree of uncertainty at this point, Wedbush Securities analyst Dan Ives told CNBC recently.

As a result, software is currently the only area of "safety" in the technology sector, he stated.

On the other hand, though, the vast majority of AI and large cloud projects are proceeding on schedule, Ives added.

Ives Is Bearish on the Hardware Makers

 After the analyst mentioned the names "Nvidia and Apple," CNBC anchor David Faber broke in, saying "You've used the word 'Armageddon' more than once."

Ives responded, "Because..when we're talking to the supply chain,that's what they're telling us." He added, "The only area we see as a safety blanket in this Category 5 storm is software."

The Analyst's Positive Comments on AI, Software Makers

"Only 5% to 10% of AI projects and (large cloud deals) are getting delayed," Ives said. Calling the latter trend "much better than expected," the analyst identified Microsoft (MSFT), Amazon (AMZN), and Palantir (PLTR) as likely beneficiaries of this situation.

Ives noted that he only expects to see "slight reductions" in spending on data centers, compared with previous, announced plans.

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Disclosure: None. This article is originally published at Insider Monkey.