Wedbush analyst Daniel Ives noted the tech industry is gearing up for Nvidia Corp's (NVDA  ) GTC 2024 in San Jose, dubbed the "AI Woodstock", signaling the beginning of a significant leap in the AI Revolution.

Under the leadership of Jensen Huang, Nvidia will likely reveal groundbreaking products, partnerships, and use cases that will propel the next phase of the AI Revolution, as per the analyst.

The event will likely set off a tidal wave of spending in the tech sector, with a forecast of over $1 trillion in AI investments over the next decade, he said.

This surge reflected the proliferation of enterprise and consumer applications in what is being termed the 4th Industrial Revolution.

The spotlight at GTC will be on Nvidia's introduction of the Blackwell B100 AI chip and architecture, marking a significant milestone for the AI industry, Ives stated.

With Capex numbers from giants like Microsoft Corp (MSFT  ), Alphabet Inc (GOOG  ) (GOOGL  ) Google, Amazon.Com Inc (AMZN  ), Oracle Corp (ORCL  ), and Meta Platforms, Inc (META  ) highlighting the transformative nature of AI investments, Nvidia is at the forefront of this movement, the analyst continued.

The demand for AI is undeniable, with the enterprise market leading the charge and consumer applications set to follow.

The AI Revolution will likely account for 8%-10% of IT budgets by 2024, up from less than 1% in 2023. This growth is driven by the extensive spending across software, IT services, and infrastructure that follows Nvidia's hardware investments.

The analyst estimates the enterprise multiplier for tech spending to be substantial: for every $1 spent on an Nvidia H100 GPU chip, there could be $10-$12 in additional spending across software, IT services, and infrastructure in the tech world.

As the AI ecosystem expands, companies explore new use cases and deepen technology partnerships as per Ives.

Moreover, the impact of AI on software companies like Microsoft, Palantir, Salesforce, and Adobe, among others, is just beginning to surface.

This also includes boosting cloud cybersecurity spending to protect valuable data, benefiting firms like Zscaler, Inc (ZS  ), CrowdStrike Holdings, Inc (CRWD  ), and Palo Alto Networks, Inc (PANW  ).

With these developments, the tech bull market is poised for growth, supported by robust trends and valuations that favor a promising outlook for the sector in a soft-landing economic scenario.

Truist Securities analyst William Stein maintained Nvidia with a Buy and raised the price target from $911 to $1177.

HSBC analyst Frank Lee reiterated Nvidia with a Buy and raised the price target from $880 to $1050.

The stock gained 241% last year. Investors can gain exposure to the AI frontrunner via Invesco Nasdaq Free Cash Flow Achievers ETF (QOWZ  ) and Pacer Funds Pacer Data And Digital Revolution ETF (TRFK  ).

Price Action: NVDA shares traded lower by 0.10% at $877.50 on last check Monday.