Wedbush: AI revolution driving surge in demand for NVIDIA Corporation (NVDA.US) chips, US tech stocks still have room to rise by the end of the year.

Investment bank Wedbush stated in its latest report that its research in Asia shows that the market is extremely optimistic about the "artificial intelligence (AI) revolution," and the demand for chips from NVIDIA Corporation (NVDA.US) is accelerating. This trend is expected to continue until 2026. The Wedbush analyst team, led by Daniel Ives, stated in the report, "In short, we see a significant acceleration in demand for NVIDIA Corporation chips. We estimate that the demand-supply ratio for NVIDIA Corporation's next-generation GPUs is close to 10:1 this astonishing number indicates that this AI revolution is still in its very early stages." Analysts believe that this demand trend is highly favorable for core chip manufacturers including Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), AMD (AMD.US), and Intel Corporation (INTC.US). As AI capital expenditures continue to drive a supercycle, these key chip suppliers will experience sustained growth, with NVIDIA Corporation still being a key beneficiary. Analysts added that supply chain checks have not shown any signs of weakening demand, in fact, the current rate of demand growth far exceeds the expectations of most industry insiders in Asia. The analysts stated, "We see this as another bullish signal for US technology stocks. As the third-quarter earnings season approaches, we expect tech company performance to match or even exceed market enthusiasm for AI, further driving tech stocks higher before the year-end. In our view, this tech bull market will continue at least until 2026." The analysts observed that numerous enterprise-level AI projects worth eight figures (millions of dollars) have been approved early, which is a strong positive signal for massive cloud service providers such as Microsoft Corporation (MSFT.US), Amazon.com, Inc. (AMZN.US), and Alphabet Inc. Class C parent company Alphabet (GOOGL.US). Additionally, they also mentioned that Oracle Corporation (ORCL.US) is well positioned in multiple large enterprise and government projects, which is why they believe the "Oracle Corporation growth renaissance" is still in its early stages and will maintain strong momentum in the coming years. Despite the obvious trade tensions between the US and China and political tensions with GEO Group Inc, the analysts stated, "Clearly, this has not slowed down the fundamental demand for these gold-class NVIDIA Corporation chips that are driving the AI revolution." They further expressed that tech stocks are expected to perform well before year-end, with the next phase of the AI revolution unfolding, and the upcoming tech earnings season attracting more investors. The analysts anticipate a further increase of more than 10% in the remaining time of this year. In conclusion, the analysts stated, "While Asian investors are still concerned about the unpredictable tensions in US-China relations, this 'soap opera-style' trade war may bring volatility, but we choose to focus on strong demand, expanding AI applications, and supply chain feedback to further confirm our bullish stance on the AI revolution." The analysts mentioned that their top six tech stock picks for the earnings season and year-end include Microsoft Corporation, NVIDIA Corporation, Apple Inc. (AAPL.US), Palantir (PLTR.US), Tesla, Inc. (TSLA.US), and Alphabet.