Nvidia Still Early in AI Boom, Says Yorkville Ives—Stock a Buy on Dip

Nvidia stock has retreated from its early May peak and briefly surrendered its position as the world's largest company by market cap to Apple before reclaiming it. Against this backdrop, Dan Ives, a partner and senior managing director at merchant bank Yorkville Ives, made a bullish case for the stock in a recent CNBC interview. Ives framed the AI revolution as being in its "third inning"—a baseball metaphor signaling that the game is still early. He went further, arguing that only 15% of the total spending that will eventually flow into AI infrastructure has been deployed so far, suggesting that if correct, the AI revolution could still be in its first inning. Central to Ives' thesis is Nvidia's dominance: he stated that "there's one chip in the world fueling the AI revolution, and that's Nvidia." While other tech giants have developed AI chips that are widely used, Nvidia is indeed the clear leader in the AI chip market with no obvious end to its dominance in sight. One striking statistic Ives highlighted is that demand for Nvidia's GPUs outstrips supply by 12-to-1, underscoring how constrained the market remains. Supporting Ives' optimism on the stock's valuation, Nvidia's forward price-to-earnings ratio stands at 22.9—the second-lowest among the "Magnificent Seven" mega-cap stocks—and its PEG ratio (price-to-earnings-to-growth, based on Wall Street's five-year earnings projections) is 0.55, a notably low figure. The article notes, however, that risks exist: rivals may improve their chips' capabilities and cost-effectiveness, and the AI boom itself could lose momentum. Still, the author believes Nvidia is unlikely to lose its market-leading position soon and expects that buying the stock on recent dips will prove rewarding, as it has historically.