Dan Ives Says Nvidia Turmoil Could Hand Big Tech an Unexpected AI Advantage as Hyperscalers Gain, Dismisses ‘Blue Tidal Wave’ Reaction

Tech bull Dan Ives believes the latest turbulence surrounding the artificial intelligence trade could ultimately strengthen Big Tech’s position, even as political uncertainty and questions surrounding Nvidia Inc. (NASDAQ:NVDA) add fresh risks to the sector.

Speaking on CNBC’s ETF Edge show, the Yorkville Ives partner argued that the market may be underestimating the resilience of AI demand and the advantage enjoyed by companies that already have significant computing capacity.

Ives Says AI Demand Still Outstrips Supply 4-To-1

Ives dismissed the market’s initial reaction to the Democrats’ congressional election gains, describing the so-called “blue tidal wave” as an overreaction.

While he acknowledged that political headwinds could slow down data center development, he argued that the underlying AI infrastructure demand remains considerably stronger than available supply.

“Data centers, as we’ve said, probably 10% on the low end don’t happen, maybe 15-20% on the high end don’t happen. Still, demand and supply is four to one,” Ives said.

He added that existing computing capacity could become even more valuable as the data center build-out faces potential delays.

“The hyperscalers, the compute is just that much more valuable in the capacity today than it was a week ago,” he said.

Ives maintained that the changing political environment could actually benefit the biggest technology companies by slowing down infrastructure expansion without undermining the broader AI opportunity.

“The game is going to change for Big Tech. It will slow it down, but there’s no there’s no overbuild, no bubble concerns, and I view that as actually a positive thing,” he added.

Nvidia’s AI Ecosystem Takes A Hit As Hyperscalers Gain Advantage

Roundhill Investments CEO Dave Mazza offered a similar perspective, suggesting that the latest market turbulence could ultimately benefit hyperscalers at the expense of smaller players in the AI infrastructure ecosystem.

Mazza pointed to investor flows into Roundhill’s Magnificent Seven ETF (BATS:MAGS) and the Roundhill Necloud ETF (NASDAQ:NCLD), highlighting how the two segments have experienced different market dynamics.

He noted that the Magnificent Seven had been “sort of left for dead for most of 2026” before staging a strong comeback in September, partly because of their defensive characteristics and ability to generate substantial cash.

However, investors have increasingly questioned whether Big Tech’s enormous capital expenditure commitments are generating sufficient returns and whether the infrastructure build-out will need to be financed with debt.

Mazza argued that hyperscalers could nevertheless emerge stronger because they already possess the computing capacity needed to capitalize on sustained AI demand.

“In a weird way may continue to benefit from this because they have the compute available. It’s going to be more valuable if the demand is there,” he said.

He also pointed to the pressure facing companies involved in Nvidia’s broader neo-cloud ecosystem.

“And some of the companies that Nvidia has really been, you know, fostering on this neo-cloud build-out are the ones that are getting hammered worse,” Mazza said.

Ultimately, he suggested that investors looking beyond mega-cap technology stocks could find themselves returning to the same names.

“We may end up in an environment, as much as investors have sort of been looking for areas outside of Big Tech, where net-net, Big Tech ends up as the winner once again,” he added.

Huang Controversy Adds Another Layer Of Uncertainty

Huang’s resignation followed reports of multiple extramarital relationships, including one with Alice Huang, a former senior executive at Singapore-based Megaspeed International.

Jensen Huang apologized for being unfaithful to his wife.

A petition urging NVDA to reinstate Huang as the CEO has received wide support, garnering over 135,000 signatures.

A petition is underway to reinstate Jensen and I’m signing it too

— Elon Musk (@elonmusk) November 13, 2026

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk shared on X that he is also signing the petition. Y Combinator CEO Garry Tan also shared that he has signed the petition as Huang deserves "due process."

Jensen deserves due process, not whatever is happening right now. I signed. #standwithjensen https://t.co/3yTMpxHJoC

— Garry Tan (@garrytan) November 14, 2026

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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