Investing.com -- Nvidia (NASDAQ:NVDA)'s recent earnings report delivered what AI bulls Wedbush called a "masterpiece performance" in a note Thursday, solidifying the company's position at the forefront of the AI revolution.
The firm said Nvidia, led by CEO Jensen Huang, posted "drop the mic" numbers that far exceeded Wall Street's expectations, with a 122% year-over-year revenue growth to $30 billion and a robust outlook of $32.5 billion for the October quarter.
Wedbush noted that while some investors had slightly higher expectations for the October quarter, Nvidia's surging AI chip demand, clarity on the Blackwell delay, and a strong enterprise pipeline indicate that the AI revolution is just beginning its next phase of growth.
The firm explained that during the conference call, Huang detailed how customers are quickly seeing returns on their GPU investments, with many eager to lead in developing new AI models and advancements.
The demand for Nvidia's AI GPUs is currently outstripping supply, reinforcing a bullish outlook for the broader tech sector.
"Nvidia has changed the tech and global landscape," Wedbush stated, emphasizing that the company's GPUs have become essential in the IT world, driving the AI revolution.
With an estimated $1 trillion in AI capital expenditures expected over the next few years, Nvidia remains the dominant player in this space, despite potential future competition from AMD (NASDAQ:AMD) and others.
Wedbush is optimistic about the tech sector's trajectory heading into 2025, especially with the Fed's potential rate-cutting cycle and the continued growth in AI spending.
They believe that Nvidia's earnings report is a major bullish indicator, once again likening the current AI-driven momentum to the early days of the internet in 1995 rather than the 1999 tech bubble.
Despite Nvidia's premarket decline, the company's earnings results and outlook have only strengthened Wedbush's bullish view on tech stocks as the AI revolution continues to unfold.