A top tech strategist says the AI arms race between the US and China is setting up an unusually favorable climate for American mega-cap tech.
In a new interview on the Schwab Network, Wedbush’s global head of tech research says global AI investment cycles are accelerating, with Asia demand signaling a multi-year wave of infrastructure and software upgrades.
Ives says the scenario is akin to early-stage adoption and supply-constrained innovation, indicating that the AI push has a long way to go.
“Investors right now are underestimating the scale and scope of the AI revolution. Look, I was just gone a month, just got back from a long trip in Asia. Demand to supply, it’s off the charts. And it continues to be driven by use cases. And the consumer hasn’t even started when you think about autonomous robotics in the future…
As the derivatives play out, the second, third, fourth derivatives of AI, that’s how you’re going to have even more and more participation across software across chips across energy across cybersecurity.”
Ives also lays out a timeline and policy backdrop, describing a multi-year cycle that benefits from friendlier regulatory conditions as the White House competes with China.
“I mean, look, this is year three of an eight to 10 year build out. And under this administration, the next three years, I mean, this is… It’s a Goldilocks scenario for big tech.”
He ties the runway directly to geopolitical rivalry and domestic incentives, saying the US has every reason to accelerate deployment.
“You’ve seen obviously a lot of innovation build up because the reality is that China, they’re not slowing down. They’re going to continue to significantly build out… So it is an arms race. And I think the administration is as tech-friendly as you could be. But that’s also that’s a great thing for the stocks.”
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