In an interview with CNBC, Dan Ives stated that Palantir and cybersecurity companies such as CrowdStrike could also benefit from broader enterprise adoption of AI.
- Ives said the AI “party” is far from over, with investors potentially looking beyond Nvidia for the next beneficiaries.
- He estimated that demand for AI infrastructure has accelerated by roughly 20% over the past three months.
- According to him, investors are increasingly looking toward the “second, third, fourth derivative” of the AI boom for the next trade.
Dan Ives, senior managing director and partner at Yorkville Ives, said Friday that Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL, GOOG) could be among the next beneficiaries of Nvidia’s (NVDA) continued strength, as investors look beyond the chipmaker for the next leg of the artificial intelligence trade.
In an interview with CNBC, Ives said Nvidia’s results showed how the various parts of the AI ecosystem continue to fit together, describing the market as a “Jenga puzzle.” He said demand for AI infrastructure has accelerated by roughly 20% over the past three months, reinforcing the case for continued spending across the industry.
He said investors are increasingly looking at the “second, third, fourth derivative” of the AI boom. “I think it’s hyperscaler and software,” Ives said, pointing to Microsoft, Alphabet and Amazon.
MSFT stock edged 0.8% lower in early morning trade on Thursday, while GOOGL shares moved 0.3% lower and AMZN stock edged 0.2% lower. On Stocktwits, retail sentiment around all three hyperscalers trended in ‘bearish’ territory over the past day.
Wolfe Research on Thursday named Google its “top pick” for 2027, with a price target of $460 and an ‘Outperform’ rating. It raised its 2027 revenue estimate for the compny by 10% to $595 billion, and also increased its earnings per share (EPS) forecast by 6% to $15.89. It sees Google Cloud growth in the third quarter (Q3) growing by 125% year over year.
Palantir, CrowdStrike Also Set To Benefit From Nvidia Growth
Ives also flagged Palantir Technologies (PLTR) and cybersecurity companies such as CrowdStrike Holdings (CRWD) as potential beneficiaries of the broader AI buildout.
PLTR stock edged 0.4% lower in pre-market trade, while CRWD stock rallied nearly 9% after its earnings beat alongside Nvidia on Thurday.
On Stocktwits, retail sentiment around PLTR remained in ‘bearish’ territory over the past day, while sentiment around CRWD was in the ‘extremely bullish’ zone.
According to Ives, the cybersecurity companies represent a different part of the AI “Jenga puzzle”. While Nvidia supplies the computing infrastructure, hyperscalers provide the cloud capacity needed to deploy AI models, while software and cybersecurity companies can benefit from greater enterprise adoption.
“Investors are figuring out … where the puck’s going. That’s what they’re going to be focused on with the next trade,” Ives said.
Nvidia Earnings Reinforce AI Demand
Nvidia’s second-quarter (Q2) revenue more than doubled to $96.2 billion and beat Wall Street’s estimates of $92.1 billion. Earnings per share (EPS) came in at $2.22, ahead of the consensus estimate of $2.09 per share.
Earnings showed that Nvidia’s flagship data center division drove most of the growth, contributing $89 billion versus average estimates of $85.8 billion. Hyperscalers such as Google and Amazon were the primary drivers of the company’s data center sales.
The company also forecast revenue of $108 billion for the third quarter (Q3), ahead of the average analyst projection of $103.9 billion. Adjusted gross margins are forecasted to hold near 74%.
NVDA stock rose nearly 6% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the AI bellwether rose to ‘extremely bullish’ from ‘bullish’ over the past day, with chatter rising to ‘extremely high’ from ‘high’ levels. Platform data showed an over 400% message volume jump in the last 24 hours.
According to Ives, the AI “party” is far from over. He stated that investors remain concerned about missing further gains after spending months questioning the sustainability of the rally.
Read also: Nvidia Earnings Send Chip Stocks Higher, But Reported New Trump Tariff Plans Could Broaden The Trade Fight
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