Dan Ives Labels Nvidia Correction A 'Near-Term Pullback', Hails Palantir As 'Purest AI Name' Amid Growing Market Use Cases
The stock of NVIDIA Corp (NASDAQ:NVDA) has seen a significant rebound after a recent correction, with a prominent analyst suggesting that the company’s market cap could reach $4 trillion. Additionally, the analyst has identified Palantir Technologies Inc. (NYSE:PLTR) as the ‘purest’ AI stock.
What Happened: Dan Ives, an analyst at Wedbush Securities, referred the recent dip in Nvidia’s stock as a “near-term pullback,” in an interview with BNN Bloomberg.
He also predicted that the company’s market cap could soar to $4 trillion, placing it alongside tech giants like Apple Inc. (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT) as the world’s most valuable company.
When asked about Nvidia’s price target, Ives suggested a bullish case of $200. He also praised Nvidia CEO Jensen Huang as a key figure in the AI industry.
Shifting the focus to Palantir Technologies Inc (NYSE:PLTR), Ives dismissed the notion that the company is not at the forefront of cutting-edge technology and sales.
He emphasized Palantir’s recent developments, labeling the company as the “purest AI name in the market in terms of use cases.” Ives expressed optimism about Palantir’s future, stating that “monetization is gonna play out” as the industry enters the second derivative of AI.
Why It Matters: The recent correction in Nvidia’s stock has been a topic of concern. After reaching a market cap of $3.46 trillion, the company experienced a significant loss, dropping to $3.10 trillion. This sparked concerns about Nvidia’s influence on the S&P 500 Index and the possibility of a broader market slump.
Despite these concerns, Ives’ comments on the future potential of Nvidia and the growing significance of AI in the market are reassuring. This aligns with the views of other experts, such as economist Jeffrey Roach, who dismissed fears of an AI bubble burst and emphasized the productivity gains from new disruptive technologies like AI.
Palantir’s role in the AI market has also been a topic of discussion, with Reddit users debating the company’s potential as an investment alongside giants like Microsoft and Amazon.
Price Action: NVIDIA Corp closed at $126.09 on Tuesday, marking a significant increase of 6.76% for the day. In after-hours trading, the stock continued to climb to $127.24, up by 0.91%. Year to date, NVIDIA has seen a remarkable surge of 161.76%.
Meanwhile, Palantir Technologies Inc closed at $24.56 on the same day, with a gain of 1.66%. After hours, the stock slightly increased to $24.61, up by 0.20%. Year to date, Palantir has shown a strong performance, rising by 48.13%, according to the data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote