Nvidia Powers AI Growth While Microsoft Drives Sector Expansion

The artificial intelligence sector continues to demonstrate robust growth and strategic shifts across various industries, with analysts dismissing concerns of an 'AI bubble.' Wedbush analyst Dan Ives, for instance, compares the current AI surge to the early internet era, projecting AI capital spending to reach between $550 billion and $600 billion by 2026. He highlights that leading AI companies already generate hundreds of billions in revenue, reinforcing the sector's solid foundation. Ives identifies ten essential AI stocks for investors, including industry giants like Nvidia, Microsoft, Advanced Micro Devices (AMD), Tesla, and Apple, alongside Meta, Alphabet, CrowdStrike, and Palo Alto Networks. AI's impact is already visible in consumer spending, as Salesforce reports global digital sales on Thanksgiving reached $36 billion, with U.S. sales hitting $8.6 billion—a 7.9% increase from last year. AI agents played a crucial role in managing the high volume of online transactions. Meanwhile, hardware manufacturers are adapting their strategies; Dell saw its stock jump 6% after raising its full-year AI server shipment forecast to $25 billion from an earlier $20 billion, expecting $9.4 billion in AI server sales in the fourth quarter alone. Conversely, HP plans to cut between 4,000 and 6,000 jobs, representing 10% of its workforce, by the end of 2028 as part of a broader initiative to integrate AI into its operations, aiming to save approximately $1 billion. The global race for AI hardware and infrastructure is also intensifying. UAE-based Mastiska secured $10 million in seed funding, primarily from GCC sovereign wealth funds, to develop data-center-class inference accelerators and establish a UAE-based fabless semiconductor company. This move aims to reduce dependency on U.S. and Chinese suppliers for sovereign AI hardware. In a related development, Chinese technology companies, including Alibaba and ByteDance, are reportedly training their AI models overseas to gain access to Nvidia's advanced chips, circumventing domestic restrictions. Beyond chip stocks, the AI infrastructure market, encompassing data centers, presents significant investment opportunities, with projections showing growth from $35.42 billion in 2024 to $223.45 billion by 2030. Companies like Digital Realty Trust, Equinix, and Iron Mountain are key players, reporting strong Q3 revenues of $1.6 billion, $2.31 billion, and $1.8 billion, respectively, driven by their extensive data center operations.

Key Takeaways

• Wedbush analyst Dan Ives asserts there is no AI bubble, comparing the current growth to the internet era, and expects AI capital spending to reach $550 billion to $600 billion by 2026.
• Ives lists Nvidia, Microsoft, Advanced Micro Devices (AMD), Tesla, and Apple among his top ten essential AI stocks.
• Salesforce reported global digital sales of $36 billion on Thanksgiving, with U.S. sales at $8.6 billion, marking a 7.9% increase, partly attributed to AI agents managing transactions.
• Dell's stock rose 6% after it increased its full-year AI server shipment forecast to $25 billion and expects $9.4 billion in AI server sales in the fourth quarter.
• HP plans to cut 4,000 to 6,000 jobs (10% of its workforce) by 2028 to implement AI in its operations, aiming for $1 billion in savings.
• UAE-based Mastiska raised $10 million in seed funding to develop sovereign AI chips and establish a fabless semiconductor company, reducing reliance on U.S. and Chinese suppliers.
• Chinese tech firms like Alibaba and ByteDance are training AI models overseas to access Nvidia's advanced chips.
• The AI infrastructure market, including data centers, is projected to grow from $35.42 billion in 2024 to $223.45 billion by 2030.
• Leading data center REITs like Digital Realty Trust, Equinix, and Iron Mountain reported strong Q3 revenues of $1.6 billion, $2.31 billion, and $1.8 billion, respectively.

AI Boosts Thanksgiving Online Shopping to $36 Billion

Salesforce expects global digital sales on Thanksgiving to reach $36 billion. U.S. sales alone are projected to hit $8.6 billion. Spending increased by 7.9% compared to last year. AI agents helped manage the high volume of online transactions, contributing to the sales jump.

Analyst Dan Ives Sees No AI Bubble Names Top Stocks

Wedbush analyst Dan Ives believes there is no AI bubble, comparing its rise to the internet era. He shared insights on ten must-own stocks for the AI future. Ives states that AI integration across industries will drive significant economic growth. This perspective offers a roadmap for investors, especially those in Hong Kong, to capitalize on the burgeoning AI sector. He emphasizes that AI investments offer substantial long-term potential.

Dell Shares Jump 6 Percent on Strong AI Server Sales

Dell's stock jumped 6% despite missing third-quarter revenue expectations. The company impressed investors with solid adjusted earnings and a clearer path to AI-driven growth. Dell raised its full-year AI server shipment forecast to $25 billion from $20 billion. It now expects to sell $9.4 billion worth of AI servers in the fourth quarter alone. Dell also forecast fourth-quarter revenue of $31.5 billion, well above analyst expectations.

HP Plans to Cut 6000 Jobs by 2028 for AI Push

HP plans to cut between 4,000 and 6,000 jobs by the end of 2028. This move is part of a larger effort to implement AI in its operations. CEO Enrique Lores stated the cuts will affect teams working on product development, customer support, and internal operations. HP expects to save approximately $1 billion by 2028 from these changes. The job cuts represent 10% of its current 58,000-person workforce.

Dan Ives Lists Top 10 AI Stocks No Bubble

Wedbush analyst Dan Ives identified ten essential AI stocks, including Nvidia and Microsoft. He believes the AI market is not a bubble because only a small percentage of companies currently use AI technology. Ives expects AI capital spending to reach $550 billion to $600 billion by 2026. Other companies on his list include Advanced Micro Devices, Tesla, Apple, Meta, Alphabet, CrowdStrike, and Palo Alto Networks. He notes that current AI companies generate hundreds of billions in actual revenue.

Mastiska Raises 10 Million for Sovereign AI Chips

UAE-based Mastiska raised $10 million in seed funding, primarily from GCC sovereign wealth funds. The company aims to develop data-center-class inference accelerators and establish a UAE-based fabless semiconductor company. Mastiska plans to build sovereign AI hardware to reduce dependency on U.S. and Chinese suppliers. It will have a model-creation team in Abu Dhabi and a VLSI design team in India. The startup will target markets like the UAE, GCC, Southeast Asia, BRICS nations, and the Global South.

Chinese Tech Firms Train AI Abroad for Nvidia Chips

Chinese technology companies are reportedly training their artificial intelligence models overseas. This strategy allows them to access Nvidia's advanced chips. The Financial Times reported this, citing two people with direct knowledge of the matter. Companies such as Alibaba and ByteDance are among those using this approach.

Invest in AI Data Centers Beyond Chip Stocks

Investors can put money into AI infrastructure like data centers instead of only chip stocks. The AI infrastructure market is expected to grow from $35.42 billion in 2024 to $223.45 billion by 2030. Three top data center REITs are Digital Realty Trust, Equinix, and Iron Mountain. Digital Realty Trust owns over 300 data centers and saw Q3 revenue rise 10% to $1.6 billion. Equinix operates 273 data centers, with Q3 total revenue up 5% to $2.31 billion. Iron Mountain, which also has over 30 data centers, reported Q3 revenues up 12.6% to $1.8 billion.

Sources

• Digital sales jump on Thanksgiving after AI agents don't take the day off (XRT:NYSEARCA)
• Dan Ives Highlights Top 10 Stocks: No AI Bubble Insight
• DELL: Dell Stock Jumps 6% After PC Maker Boosts Guidance, Driven by $9.4B in AI Sales
• HP To Cut Upto 6000 Jobs By 2028 As Part Of Push To Implement AI In Its Operations
• Analyst Dan Ives Names 10 Essential AI Stocks, With Nvidia and Microsoft at the Top
• Mastiska closes $10 million seed to advance sovereign silicon for AI compute
• Chinese tech firms said to train AI models abroad to tap Nvidia chips
• Could This Be the Best Way to Invest in AI Without Buying a Single Chip Stock?