Dan Ives expressed a bullish outlook on the tech market, particularly in AI, predicting significant growth and opportunities as we enter a new industrial revolution, with companies like Snowflake and Elastic leading the charge. He believes that advancements in AI, driven by large language models and supportive market conditions, will propel the NASDAQ to new heights, while deregulation and M&A activity will further benefit software companies.
In a recent discussion, Dan Ives expressed his optimistic outlook on the tech market, particularly in relation to the ongoing AI revolution. He emphasized that this market is poised to be “on fire,” not just in the immediate future but as part of what he believes is the beginning of a fourth industrial revolution. Ives likened the current phase of AI development to a late-night party, suggesting that while it may feel like it’s just starting, significant advancements and opportunities are on the horizon.
Ives highlighted specific companies that he has upgraded in the software space, particularly Snowflake and Elastic. He noted that these companies are at the forefront of the software aspect of AI, which he believes will become increasingly important by 2025. Ives mentioned that the growth potential for these companies is underestimated, and he sees them as key players in the evolving landscape of enterprise AI, alongside other notable names like MongoDB and Palantir.
The conversation also touched on the recent earnings reports for Snowflake and Elastic, both of which saw significant stock price increases following their announcements. Ives indicated that the consumption model for AI is changing, driven by advancements in large language models (LLMs) and the foundational role of companies like NVIDIA. He believes that the growth in this sector could exceed expectations, further propelling the stocks of these software companies.
Ives addressed the potential impact of bond yields and currency strength on the tech trade, suggesting that while these factors could pose challenges, they are already factored into market expectations. He expressed confidence that the demand for AI-driven solutions would outweigh any negative effects from currency fluctuations, predicting a bullish trajectory for the NASDAQ in the coming years, potentially reaching 20,000 or even 25,000.
Finally, Ives discussed the implications of deregulation and potential mergers and acquisitions (M&A) in the tech sector. He believes that these changes will create a more favorable environment for software companies, allowing them to pursue aggressive growth strategies. Ives also raised the price target for Palantir, asserting that its unique AI capabilities position it for substantial revenue growth in the future, potentially making it a major player akin to Oracle or Salesforce in the enterprise software market.