Dan Ives says Nvidia leads AI revolution despite stock pullback

Nvidia’s stock is down from its May peak, but Dan Ives, managing director at Yorkville, says the AI boom is only in the “third inning”—and Nvidia remains the clear leader. Speaking on CNBC, Ives called the company “the one chip in the world fueling the AI revolution.” He estimates we’re just 15% through the total spending wave, suggesting the real growth is still ahead.

The pullback has investors wondering if this is a buying opportunity or a signal to wait. Nvidia briefly lost its spot as the world’s most valuable company to Apple in June but quickly reclaimed the top rank. The stock’s valuation has dropped from its highs, but Ives argues the market isn’t pricing in the full scale of AI demand. He points to a 12-to-1 backlog in GPU orders, a sign that supply can’t keep up with accelerating AI adoption.

Nvidia dominates the AI chip market, though rivals like AMD and custom chips from hyperscalers are trying to chip away at its lead. The company’s dominance isn’t absolute, but it’s strong enough that Ives sees no immediate threat. Its forward P/E ratio of 22.9 is low compared to peers in the “Magnificent Seven,” and its PEG ratio sits at just 0.55, suggesting the stock could still have room to run even after the recent pullback.

The bigger question is whether AI growth will sustain its momentum—or if the hype has already peaked. Ives believes the revolution is still in early innings, driven by agentic AI, physical AI, and the race toward artificial general intelligence. For now, Nvidia’s position looks secure, but the stock’s future depends on execution, competition, and whether the AI spending spree lasts. If the boom continues, the pullback may look like a temporary dip. If it fades, even the strongest players could stumble.