Dan Ives Says Nvidia Demand Is Outpacing Supply "12 to 1." Here's What That Means for the Stock's Next Move.

Wedbush analyst Dan Ives reports Nvidia is facing a 12-to-1 demand-to-supply ratio for its chips, signaling severe supply constraints even as hyperscalers ramp AI infrastructure spending. The stock has gained just 4% year-to-date despite the company posting 85% revenue growth, creating what Ives views as a significant opportunity.

Alphabet, Amazon, and Microsoft are among the tech giants aggressively increasing capital expenditures for AI buildouts, directly benefiting Nvidia's data center GPU sales. Ives argues the AI infrastructure wave remains in early stages, with physical AI applications—think robotics and autonomous systems—still largely untapped markets for the chipmaker.

The extreme demand imbalance suggests pricing power and order backlog visibility extend well into future quarters. Nvidia's modest 2025 performance relative to its revenue trajectory indicates the market may be underestimating the durability of AI spending cycles, particularly as enterprise adoption accelerates beyond the initial hyperscaler deployment phase.