Dan Ives from Wedbush Securities discussed the implications of potential export controls on Nvidia, highlighting the emergence of DeepSeek AI as a competitive threat while noting that the actual impact of such regulations may be less severe than feared. He expressed optimism about the strong demand for technology, particularly for Nvidia and Apple, suggesting that investors should view market fluctuations as opportunities for long-term gains.
In a recent discussion, Dan Ives from Wedbush Securities addressed the implications of potential export controls on companies like Nvidia, particularly in light of a recent $100 million investment from Taiwan Semiconductor. While there were expectations of announcements regarding chip-related regulations from the Trump administration, the actual news did not materialize as anticipated. Ives noted that concerns about export restrictions are still prevalent, especially regarding their potential impact on the supply chain and the availability of advanced chips, despite the current demand-supply ratio favoring demand.
Ives characterized the emergence of DeepSeek AI as a significant warning for Nvidia, suggesting that the use of next-generation Nvidia chips by competitors raises concerns about the competitive landscape. He acknowledged that while there are fears surrounding increased restrictions, he believes the actual impact may not be as severe as anticipated. He emphasized that the market’s reaction may be overly cautious, and the demand for chips remains robust, with a 15 to 1 demand-to-supply ratio for certain products.
The conversation also touched on the broader sentiment in the tech sector, particularly regarding Nvidia and AI investments. Ives indicated that while there is turbulence in the market, the underlying demand for technology remains strong. He advised investors to view these fluctuations as opportunities rather than reasons to withdraw from the market, suggesting that owning stocks like Nvidia during challenging periods can yield long-term benefits.
Additionally, the discussion shifted to Apple and the potential impact of tariffs on iPhone pricing. Ives expressed confidence that Apple would likely find loopholes to mitigate the effects of tariffs, similar to strategies employed in previous years. He suggested that Apple’s strong financial position allows it to absorb some costs without passing them onto consumers, which could help maintain its market stability.
Overall, Ives conveyed a cautious yet optimistic outlook on the tech sector, particularly regarding Nvidia and Apple. He acknowledged the challenges posed by regulatory concerns and market sentiment but maintained that the fundamental demand for technology products remains strong, positioning these companies as potential long-term winners in the industry.