While OpenAI CEO Sam Altman is warning of an artificial intelligence (AI) bubble, Wedbush Securities analyst Dan Ives is pushing back, forecasting a sustained tech bull market driven by what he calls the “fourth industrial revolution.”

Countering Altman's caution, Ives argues that the AI boom is just getting started and that its long-term impact is being significantly underestimated by investors.

“My view is that the next two to three years will be a tech bull market,” Ives told CNBC on Monday. He dismissed the bubble narrative, stating, “What I believe we are only in the second inning of the game.”

Ives pointed to burgeoning enterprise use cases and surging demand as evidence of a foundational shift, not a speculative frenzy. “What I see on the public side, I see ultimate demand that’s 30-40% more than I saw 3-4 months back, I see transformational CapEx that I view as a fourth industrial revolution,” he added.

Ives believes recent corporate earnings are a “validation moment for AI” and that the market is failing to grasp the full scope of the transformation.

He anticipates the next wave of growth will come from “second-third derivatives across software, cybersecurity, and autonomous” over the next 12 to 18 months. “I think the investors are actually underestimating where this tech market’s going,” he concluded.

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This optimistic outlook stands in stark contrast to recent comments from Altman, one of the pioneers in the AI space. The OpenAI chief reportedly told reporters last week that while AI is “the most important thing to happen in a very long time,” he believes the market is in a bubble.

“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman was quoted as saying, comparing the current investor enthusiasm to the dot-com crash of the early 2000s. — https://www.benzinga.com/markets/tech/25/08/47171979/sam-altman-says-openai-has-to-go-public-as-he-expects-ai-firm-to-spend-trillions-drawing-1990s-dot-com-bubble-parallels

On Monday, Ives announced the inclusion of cybersecurity leader CrowdStrike Holdings Inc. CRWD, gaming platform Roblox Corp. RBLX, energy giant GE Vernova Inc. GEV, and cloud provider Nebius Group NV NBIS.

To make way for the new additions, software maker Adobe Inc. ADBE, along with cybersecurity firms Cyberark Software Ltd. CYBR and Elastic NV ESTC, have been removed from the Dan IVES Wedbush AI Revolution ETF IVES.

The IVES ETF, which began trading on June 4, has gained 11.35% since its listing. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, ended slightly below the flat line on Monday. The SPY was down 0.022% at $643.30, while the QQQ declined 0.040% to $577.11, according to Benzinga Pro data.

On Tuesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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