Analyst Dan Ives Rejects ‘AI Bubble' Fears Despite Stock Drop

Nvidia Corp (NASDAQ:NVDA) delivered a blowout quarter on Wednesday after market close, but the stock still stumbled as analysts Dan Ives and Ross Gerber offered sharply different perspectives on what the sell-off really means for the broader AI and market landscape.

Analyst Dan Ives Rejects ‘AI Bubble’ Fears Despite Stock Drop

Nvidia reported third-quarter revenue of $57.0 billion, marking a 62% jump from a year ago and topping the Wall Street consensus estimate of $54.88 billion.

However, despite the blockbuster results, the stock closed down 3.15% Thursday at $180.64, according to Benzinga Pro.

Taking to X, formerly Twitter, Ives said, “Nvidia monster earnings were a major validation moment for the AI Revolution despite today’s sell-off.”

In another post, he said, “This is not an AI Bubble and Nvidia’s blowout quarter and bullish demand commentary around Blackwell/Rubin is what we focus on despite this sell-off.”

See Also: Nvidia Vs. AMD: The Gap Isn’t Closing — It’s Getting Wider

Tiny Global AI Adoption Rates Underscore Long-Term Demand: Ives

Ives, speaking on CNBC’s Closing Bell, described Nvidia’s quarter as a “masterpiece” and said the results should put lingering concerns about an AI bubble “out the window.”

He highlighted that demand for Nvidia’s Blackwell and Rubin chips continues to outpace supply by a double-digit margin, adding that the world remains in the “top of the third” inning of the AI cycle.

Only a small fraction of companies globally have adopted AI, Ives noted — about 3% in the U.S., nearly zero in Europe and less than 1% in Asia outside China.

With sovereign buyers and Middle Eastern governments just beginning to ramp up investment, he argued that far more capital will flow into AI infrastructure over the next several years.

Ives also dismissed concerns that tech giants may struggle to recoup their soaring AI spending, pointing to rapid adoption across enterprise platforms. “Use cases are exploding,” he said, citing companies like Palantir Technologies (NASDAQ:PLTR) and Snowflake (NYSE:SNOW).

He reiterated that stocks such as Nvidia, Oracle Corp (NYSE:ORCL) and Microsoft Corp (NASDAQ:MSFT) remain long-term beneficiaries and called the pullback a buy-the-dip moment.

Ross Gerber Flags Broader Market Stress And Rate Concerns

While Ives focused on AI-sector strength, Gerber Kawasaki co-founder Ross Gerber attributed Nvidia’s decline to mounting macroeconomic pressure rather than company-specific issues.

Gerber posted on X that Thursday was “not a good day for stocks,” arguing that the market’s broader correction is still unfolding despite strong earnings across tech.

He expressed skepticism about the latest jobs report, saying he does not believe the economy is strong enough to justify the Federal Reserve holding rates steady.

The U.S. labor market showed a surprisingly strong rebound in September with 119,000 new jobs added, but the unemployment rate ticked up to 4.4%, its highest since 2021, while wage growth came in slightly below expectations.

“The market clearly wants lower rates, the economy needs lower rates,” Gerber wrote, adding that he expects President Donald Trump to renew public criticism of Fed Chair Jerome Powell.

Historic Volatility Highlights Market Uncertainty

The Kobeissi Letter underscored the magnitude of swings on Thursday, noting that Nvidia added and then erased $450 billion in market cap within 36 hours — a $900 billion swing that reflects heightened volatility in AI stocks.

Nvidia ranks in the 98th percentile for Growth and the 92nd percentile for Quality in Benzinga’s Edge Stock Rankings, underscoring its exceptional performance compared with industry peers.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.