The stock closed at $119.37 on Friday, reflecting an approximate 8% loss for the week, despite ongoing confidence in the AI market's potential.

He emphasized Nvidia's competitive advantage over rivals, reinforcing its position as a leader in the AI chip market.

Ives acknowledged that while the evolution of AI will take time, signs of progress are clearly emerging.

Demand for Nvidia chips is expanding beyond major hyperscalers like Microsoft, OpenAI, Amazon, and Google, as more enterprises adopt AI technologies.

Nvidia recently reported strong earnings that exceeded forecasts; however, its stock fell due to investor concerns over delays with the upcoming Blackwell chips.

He estimates that revenue from Blackwell could reach tens of billions of dollars, attributing the cautious guidance to CEO Jensen Huang's strategic approach.

Wedbush analyst Dan Ives maintains a bullish outlook on Nvidia, asserting it remains 'the only game in town' in the AI chip market, despite the setbacks.

Other Wall Street analysts share this optimism, with Bank of America raising its price target from $150 to $165 while maintaining a buy rating.

Ives projects that capital expenditures on AI will reach $1 trillion over the next three years, doubling his previous forecast made six months ago.

Ives noted that Huang alleviated concerns with robust revenue guidance, even though it did not meet the most optimistic analyst expectations.

Ives highlighted Nvidia's strong revenue guidance, noting that every dollar spent on its chips generates 8-10 times that amount in the tech sector.

Ives likened Nvidia's market dominance to that of a young LeBron James, suggesting the company is poised for significant growth.