‘The haters will hate’: Dan Ives predicts Nasdaq 30,000 as AI rally expands

According to Dan Ives, managing director at Wedbush Securities, the Nasdaq Composite is poised to reach 30,000 points within the next year. This prediction comes on the heels of a strong earnings season that has ignited excitement surrounding AI stocks. Speaking on CNBC's Squawk Box Europe, Ives noted that the recent tech earnings have shifted investor sentiment from caution to optimism, largely due to the ongoing expansion of AI infrastructure. As of last Friday, the Nasdaq Composite closed at 26,247.08, reflecting a 12.93% increase this year. "These earnings have validated the AI bullish thesis," Ives remarked, emphasizing that the demand for chips currently outweighs supply by ten to one. He believes we are still in the early stages of what he describes as the AI revolution, stating, "The haters will hate, and we know that." Contrasting Ives' optimism, Michael Burry, famed for his role in the film "The Big Short," expressed concerns about the stock market's growing obsession with AI, likening it to the latter days of the dot-com bubble. He argued that stock performance is not driven by economic indicators like job growth or consumer sentiment, but rather by a self-perpetuating upward trend based on a simplistic understanding of AI. Despite these warnings, Ives remains bullish about the AI market's trajectory, predicting that it will continue for at least another two years. He referred to the current climate as a "memory super-cycle," highlighting the unprecedented demand for memory chips spurred by rapid advancements in AI infrastructure. Ives also suggested that investors need to diversify their holdings in the sector, saying, "It's about playing the hyperscalers – of course chips, then software, cybersecurity, infrastructure, and power. You can't just own one subsector; you have to own the derivative plays." The enthusiasm for AI stocks is evident, as the Nasdaq's PHLX Semiconductor Sector Index, which includes the top 30 chip companies in the U.S., has surged by 38% over the past month. Major players like Intel, Nvidia, Apple, and Alphabet have all seen their stock prices rise by double digits. Paul Tudor Jones, founder of Tudor Investment, echoed Ives' sentiments, indicating that while the AI-driven bull market has further potential, investors should be cautious of possible significant valuation corrections in the future.