Nvidia stock pullback a buying opportunity, says Dan Ives

Star tech analyst Dan Ives sees the AI sell-off as a buying opportunity for Nvidia (NVDA) shares rather than a warning about higher borrowing costs and the financing of AI infrastructure.

Nvidia shares were down 0.5% in premarket trading on Friday, after declining about 5% over the previous two sessions amid a broader sell-off in chip stocks.

"NVIDIA remains the bedrock of the AI Revolution in our view, and we believe the Street still underestimates how far its advantage now runs beyond the GPU to the architecture that defines how AI infrastructure is built and operated," Ives said.

Former Wedbush analyst maintained an Outperform rating and a $300 price target, saying demand for Nvidia's AI chips remains strong and is constrained more by supply than by customer appetite.

Nvidia's preliminary fiscal 2028 outlook points to revenue growth of about 70%, with supply expected to remain the main bottleneck through that period. Ives said much of the demand is backed by contracts and funded through cash flow generated by major cloud computing companies.

Nvidia's advantage extends beyond its graphics processing units to its broader AI infrastructure, including networking, complete computing systems and its CUDA software platform, according to Ives.

"Weeks like this one have marked the entry points of this cycle, not the end of it, and we see NVIDIA's share of each incremental infrastructure dollar rising as the buildout moves from training into reasoning, agents, and robotics," Ives added.

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