When Wedbush Securities Managing Director Dan Ives wants to make a point about market dominance, he doesn't mince words. Speaking on Schwab Network's 'Watch List,' he summed up the current state of artificial intelligence with remarkable bluntness: "At the end of the day, it's Nvidia's world, everyone else is paying rent."

That's not just colorful commentary. Ives is backing up his assessment with some eye-popping numbers and a forecast that should have tech investors paying close attention.

The Supply Crunch That Won't Quit

Here's the statistic that matters: for every Nvidia Corp. (NVDA) chip available in the market, there's demand for twelve more. That's a 12-to-1 supply-demand imbalance that would make any economics professor giddy with real-world examples.

Despite aggressive pushes from tech giants like Alphabet Inc. (GOOG) (GOOGL) Google and Meta Platforms Inc. (META) to develop their own silicon alternatives, Nvidia remains what Ives calls the "Godfather of AI." And with the company's inventory reportedly sold out through 2026, he argues that betting against Nvidia's dominance is "the wrong move"—no matter what progress competitors like Advanced Micro Devices Inc. (AMD) or Google's TPU program manage to achieve.

The message is clear: other companies can build their own chips all they want, but Nvidia's lead appears insurmountable for now.

How Late Is This Party, Anyway?

If you're worried that the AI boom has already peaked or that the Federal Reserve's rate decisions might derail the tech rally, Ives has a metaphor for you. Using his characteristically vivid language, he explained that if the AI party started at 9 p.m., we're currently only at 10:30 p.m., and the festivities are expected to continue until 4 a.m.

In other words, we're early. Very early.

Ives characterizes the broader market environment as "risk-on" and dismisses Fed-related concerns. His advice? Prepare for the S&P 500 to hit 7,000 in the coming weeks. That's not a typo—he's predicting significant upside from current levels, and he sees this tech bull market extending well into 2026.

The Shopping List Beyond Nvidia

While Nvidia might be the star of the show, Ives identified several other "table pounder" opportunities that investors should consider.

Palantir Technologies Inc. (PLTR) tops his list with a bold prediction: the software giant could reach a $1 trillion market cap within two to three years. That's a massive valuation target for a company that's already seen significant gains but suggests Ives sees room for substantially more growth.

He also highlighted Microsoft Corp. (MSFT), Oracle Corp. (ORCL), and CrowdStrike Inc. (CRWD) as core holdings for anyone building a tech-focused portfolio.

Building Vegas in the Desert

When critics question whether Big Tech's massive capital expenditures on AI infrastructure make sense, Ives has another analogy ready. He likens the current spending spree to "building Vegas in the desert" or Dubai 25 years ago—necessary infrastructure investments for what he calls a fourth industrial revolution.

It's an interesting historical parallel. Building a luxury city in the Nevada desert probably seemed ridiculous to plenty of people at the time. But sometimes the crazy bets pay off.

Consumer Tech Gets Its Moment

Ives isn't limiting his bullish outlook to enterprise AI. On the consumer front, he's standing firm on Tesla Inc. (TSLA) with an $800 bull case price target. The driver? A potential $1 trillion valuation for Tesla's autonomous driving business alone. That's a massive bet on the company's self-driving technology eventually delivering on its long-promised potential.

And then there's Apple Inc. (AAPL). Ives predicts a consumer AI revolution led by the iPhone maker, forecasting an iPhone 17 supercycle that he believes will keep CEO Tim Cook at the helm for years to come. The implication is that Apple's integration of AI features into consumer devices will drive a major upgrade cycle.

The Numbers Behind the Hype

Let's ground all this enthusiasm in actual performance. Nvidia shares have climbed 30.33% year-to-date, outpacing the Nasdaq 100 index's 20.32% return over the same period. Over the past year, the stock has gained 33.19%. On Wednesday, shares rose 1.37% to close at $180.26.

The stock maintains a stronger price trend over the long term but shows weakness in short and medium-term trends, with a poor value ranking according to market data. That mixed technical picture suggests that while the long-term story remains intact, investors should expect continued volatility along the way.

Ives's forecast represents one of the more bullish outlooks on both Nvidia specifically and the tech sector generally. Whether his predictions about supply-demand imbalances lasting through 2026 and the S&P 500 hitting 7,000 come to fruition remains to be seen. But his track record on tech stocks and his deep industry connections mean his views carry weight with investors trying to navigate this AI-driven market cycle.

The key question is whether the infrastructure being built today will generate returns that justify the massive investments being made. If Ives is right, we're still in the early innings of a transformation that will reshape multiple industries. If he's wrong, well, at least the party was fun while it lasted.