Wedbush analyst Dan Ives says easing U.S.-China AI chip tensions and renewed approval for NVIDIA Corp. (NVDA)'s H200 sales to China could add fresh momentum to the broader technology rally, particularly across chips, cloud infrastructure, and AI software.

Ives Sees Nvidia At Center Of AI Trade

Ives described NVIDIA CEO Jensen Huang as the "Godfather of AI" and said U.S. approval for H200 AI chip sales to 10 Chinese companies marked a major positive development for NVIDIA and the broader semiconductor sector.

He said the China summit between President Donald Trump and Chinese President Xi Jinping highlighted how critical AI chips and the semiconductor supply chain have become in the global technology race.

According to Ives, China continues to try to build domestic AI chips and models, such as DeepSeek, to reduce its dependence on NVIDIA.

However, demand for advanced computing infrastructure globally still exceeds supply.

Wedbush Expects AI Rally To Continue

Ives said improving geopolitical conditions, upcoming NVIDIA earnings, and accelerating enterprise AI adoption create a favorable backdrop for technology stocks.

He added that companies tied to networking, cloud infrastructure, semiconductors, and AI software should continue benefiting as the AI monetization cycle expands.

Ives also said hyperscalers remain heavily committed to AI infrastructure spending, reinforcing long-term demand trends across the semiconductor ecosystem.

Software And Cloud Adoption Accelerate

Ives said Wall Street continues underestimating AI-related cloud growth opportunities for Microsoft Corp. (MSFT) Azure and Amazon.com Inc. (AMZN) Amazon Web Services.

He also pointed to positive demand signals from companies such as Palantir Technologies Inc. (PLTR), Datadog, Inc. (DDOG), and Innodata Inc. (INOD) as evidence that enterprise AI use cases are expanding rapidly.

According to Ives, enterprise customers and CIOs are increasingly focused on launching AI-driven department-level and enterprise-wide applications in 2026, supporting continued strength across chips, infrastructure, and software.

NVDA Price Action: Nvidia shares were down 2.70% at $229.38 at the time of publication on Friday. The stock is approaching its 52-week high of $236.54, according to market data.