Dan Ives on Nvidia: It’s the one chip in the world fueling the AI revolution

system working in the background can keep >> NVIDIA SHARES HITTING ANOTHER RECORD HIGH. THE STOCK APPROACHING $6 TRILLION IN MARKET CAP. FOR MORE ON WHERE IT'S HEADING FROM HERE, WE'RE JOINED BY YORKVILLE IVES PARTNER AND SENIOR MANAGING DIRECTOR DAN IVES. GOOD TO SEE YOU, MAN. THANKS FOR COMING BACK. TO YOU. WHAT'S BEHIND THIS THIS RECENT BURST IN THE STOCK YOU THINK? >> I THINK THE. >> BIGGEST THING IS. >> AS ALL THE. >> CHECKS. >> ARE COMING IN ASIA, I THINK INVESTORS ARE REALIZING NUMBERS ARE PROBABLY UNDERESTIMATED BY 2,530% OVER THE NEXT YEAR. I MEAN, WE'VE SEEN JUST A MASSIVE ACCELERATION FROM ALL THESE ENTERPRISE AI USE CASES. AND NVIDIA, IT'S THE ONE CHIP IN THE WORLD FUELING THE AI REVOLUTION. THAT'S WHAT YOU'RE SEEING PLAY OUT HERE. >> UNDERESTIMATED BY 20 TO 30% REALLY. I MEAN THAT'S A LOT. HOW CAN WE POSSIBLY BE THAT FAR OFF. >> YEAH SCOTT. I THINK CHIP DEMAND AND IF YOU GO BACK TO THE LAST FEW QUARTERS, YOU KNOW, THERE WAS SORT OF A SHRUG OF THE SHOULDERS WITH NVIDIA. BUT UNDERNEATH, IF I LOOK AT WHAT'S HAPPENING IN ASIA FROM ALL OF OUR CHECKS IT'S ACCELERATING. I MEAN IT WENT FROM 10 TO 1 11 TO 1 TO WHAT LOOKS DEMAND SUPPLY 13 TO 1, 14 TO 1. BECAUSE NOW PHYSICAL AI, THESE OTHER USE CASES ON ENTERPRISES, IT'S ALL EXPANDING. SO IT'S NOT JUST ABOUT THE HYPERSCALERS. IT COMES DOWN TO THERE'S ONE CHIP IN THE WORLD FUELING, AND THAT'S NVIDIA. AND I THINK INVESTORS TO SOME EXTENT, I THINK WERE MAYBE EVEN CAUTIOUS GOING INTO THE LAST QUARTER. AND NOW IT'S BECOMING PRETTY CRYSTAL CLEAR THAT NUMBERS ARE JUST MASSIVELY UNDERESTIMATED, NOT JUST THIS QUARTER, BUT I THINK OVER THE NEXT CALL IT 6 TO 8 QUARTERS. >> I MEAN, MAYBE INVESTORS ARE BETTING ON THAT BY VIRTUE OF HOW THEY'RE PUSHING UP THE NASDAQ, WHICH IS AT ANOTHER RECORD HIGH. I WANT YOU TO LISTEN TO A CONVERSATION, A COMMENT THAT JOSH BROWN MADE FROM HALFTIME TODAY, JUST ABOUT THE MEGA CAPS, WHY THEY'RE RUNNING AND WHERE THEY CAN GO. LISTEN. >> THE TRUTH IS, IF APPLE IS IN A PRODUCT CYCLE AND MAKING HIGHS AND NOW YOU HAVE NVIDIA AFTER CONSOLIDATING FOR GOD KNOWS HOW LONG, STARTING TO MAKE NEW HIGHS AND YOU'VE GOT EARNINGS REVISIONS GOING HIGHER FOR THOSE TWO NAMES. MICROSOFT IS IN SOME SORT OF A STASIS. META HAS GOTTEN ITS GROOVE BACK. THEY'VE GOTTEN THE NARRATIVE BACK. THEY'RE GETTING MULTIPLE EXPANSION ON TOP OF A NEW EARNINGS GROWTH STORY. THOSE ARE THE STOCKS THAT REALLY MATTER FOR LIKE HOW DOES THE S&P FINISH THE YEAR. >> I'M ASSUMING YOU'D AGREE WITH THAT. I DON'T THINK THAT'S A BIG SHOCK GIVEN THE SIZE OF THE MARKET CAPS FOR THOSE NAMES. BUT ON THE IDEA OF MICROSOFT, WHICH BY THE WAY GOT AN UPGRADE TODAY AT 665, IS THE PRICE TARGET. YOU KNOW, OVER THE LAST MONTH, OUTSIDE OF META, MICROSOFT IS THE BEST PERFORMER, ALBEIT BY A LITTLE OVER ITS MEGA-CAP COMPETITORS. WHY SO? >> IT'S BECAUSE IT'S BECAUSE THE ENTERPRISE BECAUSE WHEN YOU LOOK AT AZURE AND YOU LOOK AT WHERE THESE USE CASES ARE GOING, IT'S ULTIMATELY REVENUE IN THE DELTA THAT ARE WINNING SO MANY OF THOSE DEALS. AND I THINK IT GOES BACK TO THE LAST FEW QUARTERS. LOOK, MICROSOFT WAS ONE YOU KNOW, EVERYONE'S A VERY NEGATIVE ON IT. BUT AS YOU'VE SEEN IT NOW PLAY OUT AS THE USE CASES EXPAND THAT AZURE NUMBER, YOU COULD BE LOOKING AT AN INCREMENTAL 1,015% OF REVENUE THAT STREET'S NOT ACCOUNTING FOR. AND I THINK IT ALL DOVETAILS INTO THE NVIDIA THEME AND WHAT WE'RE SEEING ON THE HYPERSCALERS AS THESE ACCELERATED OVER THE NEXT FEW QUARTERS. BIG TECH IS ULTIMATELY IT'S FLEXING ITS MUSCLES AGAIN. AND THEN YOU ADD META AND MUSE. AND THAT REALLY, I THINK, YOU KNOW, SOLIDIFIES