Tech bull Dan Ives expressed optimism after Microsoft Corp.
What Happened: Wedbush's Ives called Microsoft and Google's earnings "robust" and said money is going into artificial intelligence (AI) technologies.
He expressed his excitement about the strong tech results from Microsoft and Google and referred to the AI Revolution as a "1995 moment," in an interview with Bloomberg Surveillance.
He emphasized the need for increased AI spending, suggesting that it indicates a shift towards the "fourth industrial revolution."
Both Microsoft and Google beat analyst expectations in terms of revenue and earnings per share (EPS.)
While Microsoft reported a 17% increase in revenue year-on-year to $61.9 billion, Google parent Alphabet reported a 15% growth in revenue during the same period to $80.539 billion and announced its first-ever dividend.
Why It Matters: Ives referred to the current state of AI as a significant turning point in the industry.
His comments are in line with his previous statements, where he expressed optimism about the prospects of big technology companies in the March 2024 quarter, citing the AI revolution and improving ad spending as catalysts for a 15% rally in tech stocks.
Ives has been increasingly bullish about his "AI revolution" thesis, stating that we are just beginning to enter this cycle, and the "popcorn" is just getting out.
He also compared Microsoft CEO Satya Nadella to a "grandmaster chess player" and lauded Microsoft's Azure cloud platform for its growth in the AI sector.
Price Action: At the time of writing, Microsoft's shares were trading 2.9% higher at $410.66, while Alphabet Inc.'s shares were up 9.91% at $173.61, according to Benzinga Pro.
