Dan Ives said Nvidia price increases for AI server chips are a bullish signal for the broader technology sector [1].
This perspective suggests that the current AI market is far from peaking. If a dominant supplier can raise prices without losing customers, it indicates a level of demand that could drive growth across the entire tech ecosystem.
Speaking during a Bloomberg Television Markets segment, Ives, a partner and senior managing director at Yorkville Ives & Co., said Nvidia AI server chip prices are increasing by more than 15% in many cases [1]. He interprets these price hikes as evidence of a robust market where buyers are willing to pay premiums for essential hardware.
According to Ives, the current imbalance between production and desire for the hardware is extreme. He said demand for Nvidia AI chips is outpacing supply at a ratio of 12 to one [2]. This gap suggests that the infrastructure phase of the AI revolution is still accelerating.
Ives believes the broader market has not yet reached its ceiling. He said the tech sector has about 15% more upside in 2026 [3]. This growth potential is tied to the belief that the industry is still in the early stages of adoption.
"We're in the third inning of the AI revolution," Ives said [2].
He said the AI trade is still in the third inning and there is plenty of upside left for tech stocks [3]. By framing the current era as the early stages of a game, Ives suggests that the long-term trajectory for AI-integrated companies remains positive despite short-term volatility or price adjustments.
“Demand is outpacing supply 12 to 1.”
The ability of a market leader like Nvidia to implement price increases without dampening demand typically signals high pricing power and a lack of viable competitors. For the broader tech sector, this implies that the capital expenditure phase of AI deployment is still in a growth cycle, suggesting that the 'AI bubble' concerns may be premature if the underlying demand remains this aggressive.
