Dan Ives has become increasingly optimistic about NVIDIA after the company's GTC conference, citing several key factors that together paint a picture of AI growth that is far from reaching its peak.
Demand Extends Far Beyond Expectations: From Cloud Giants to Widespread Adoption Ives emphasized that the most critical message from the GTC conference is that AI demand is no longer limited to just a few major cloud service providers. During his keynote, Jensen Huang pointed out that demand is coming from "every corner"—including startups, traditional enterprises, and even government-backed "sovereign AI" projects. This broad diffusion of demand indicates that AI investment is no longer a game for a handful of giants but is permeating all aspects of the economy, providing NVIDIA with more durable and diversified growth momentum.
Market Size Forecast Doubles: Up to $1 Trillion in Order Visibility This is the most compelling metric driving Ives' increased optimism. NVIDIA significantly raised its market opportunity expectations at GTC, announcing that purchase orders related to its Blackwell and Vera Rubin platforms could reach approximately $1 trillion by 2027. This figure doubles the previous forecast of $500 billion by 2026. In Ives' view, this remarkable order visibility directly refutes market concerns about the sustainability of AI spending, proving that AI infrastructure construction remains in a phase of rapid expansion.
Strategic Focus Shifts to Inference: Opening a Larger Market Ives believes NVIDIA's strategic narrative is shifting from "training" to "inference." If training represents the one-time cost of building AI models, then inference refers to the continuous, ongoing computational demand generated after model deployment. At GTC, Jensen Huang positioned inference as the next trillion-dollar opportunity and showcased the significant advancements in inference performance and efficiency offered by next-generation platforms like Vera Rubin. This demonstrates to analysts like Ives that the monetization of AI has only just begun, and NVIDIA is at the starting point of a larger, more sustained wave of spending.
Market Impact as a "Confidence Booster" Ives described Jensen Huang's keynote as a "much-needed confidence booster" for the technology industry. Amid recent volatility in NVIDIA's stock price and market worries about peak AI spending, the strong demand and broad prospects communicated at GTC effectively boosted market sentiment. Ives contends that NVIDIA is not losing momentum; instead, its dominance in the AI field is expanding from chips to the entire full-stack infrastructure, with its leading advantage continuing to grow.
In summary, Ives' bullish outlook is built on three foundations: the broadening scope of demand, the doubling of the market opportunity, and the strategic shift toward the more sustainable "inference" phase. He believes the AI revolution is accelerating rather than slowing down, and NVIDIA remains squarely at the center of this transformation.