“The AI party is just getting started”: Dan Ives
Key facts:
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The “party” could last approximately three years, the analyst anticipates.
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The shares of the Nvidia company lead the movements of this market niche.
The artificial intelligence (AI) industry is showing great growth potential, something that favors the cryptocurrency and token market in this niche.
“The AI party is just beginning,” Dan Ives, an analyst at investment firm Wedbush Securities, said about the industry. He warns that the artificial intelligence revolution is starting with Nvidia and spreads with the rest of the tech world joining in.
Nvidia this week surpassed Microsoft as the world’s most valuable company (although it later regained second place), while strengthening itself as the world leader in artificial intelligence hardware and software. The company stands out for providing graphics processing units (GPUs), which are used by various activities such as multimedia production, virtual reality games, cryptocurrency mining, and AI applications.
“The only place in ‘town’ for GPUs to run generative AI applications is through Nvidia,” Ives noted. That is why this company is benefiting from the first wave of investment in this industry. With that, its share price (Nasdaq: NVDA) rose 40% in the last 30 days and more than 165% so far in 2024.
According to the Wedbush Securities analyst, Nvidia’s success is just a sample of the growth that other companies in this industry can have. He maintains that Apple, for example, is working on creating a app store of AI for iPhone that could attract a massive number of consumers.
For the investment firm, the technology industry’s bull market, highlighted by AI, may extend into 2027, with developments from multiple companies opening up opportunities for investors.
Without going further, The giant store chain Target Corporation announced yesterday that it will implement a GenIA tool for its team in August in its almost 2,000 branches. It is a chatbot that will be able to answer questions about work processes, train staff, support operations management, among other tasks.
Target said this initiative makes it the first major retail company to bring this technology to its equipment. It should be noted that GenIA, also known as generative AI, is a type of artificial intelligence system capable of generating text, images and tasks in response to commands.
One day before that, Co-founder and former CEO of ChatGPT maker OpenAI, Ilya Sutskever, unveiled his new artificial intelligence company. This, called Safe Superintelligence Inc, aims to develop an AI model that offers data security.
AI tokens benefit from industry boom
Amid the rise of AI, industry project tokens and cryptocurrencies have seen price increases. Most of the hundred with the largest market capitalization are in gains so far this year, with gains ranging up to more than 200%. This is despite having recorded declines in the last month, as seen below.
The performance of this market has been in conjunction with the rise of bitcoin this year to a new all-time high in March, which motivated demand for crypto assets. Since then, the digital currency has continued to consolidate the price zone below the record of $73,700 (USD), leading cryptocurrencies and tokens to retreat.
In this sense, advances in the artificial intelligence industry, as well as a continuation of the bullish trend of bitcoin, are presented as factors that will continue to drive AI tokens.
