Nvidia Corp. NVDA has once again defied market expectations, delivering a blockbuster third-quarter performance that tech analysts are calling a watershed moment for artificial intelligence.

What Happened: Wedbush Securities Managing Director Dan Ives described the results as a “jaw-dropper,” emphasizing the transformative potential of the company’s AI technology. “This is the fourth revolution playing out in front of our eyes,” Ives told CNN, highlighting the broader implications for the tech sector.

Referring to Nvidia’s CEO Jensen Huang as the “Godfather of AI,” he described the company’s performance as a transformative moment.

Ives boldly predicted a Nasdaq surge to 25,000, driven by the “fourth revolution” in technology. “This is the rally, get ready,” he emphasized, highlighting an extraordinary economic multiplier where “one dollar spent on GPU chips translates to an $8 to $10 impact across the tech sector.” The analyst believes the market is underestimating demand for AI technologies in the next 12 to 18 months.

The analyst addressed potential risks to the AI boom, noting initial market nervousness about high spending and profitability concerns. However, he sees improving confidence, citing companies like Palantir Technologies Inc PLTR, ServiceNow Inc NOW, and Oracle Corp ORCL as positive indicators.

Geopolitical concerns, particularly around China and potential tariffs, remain a consideration. Yet, Ives found reassurance in diplomatic channels, specifically mentioning Tesla Inc TSLA CEO Elon Musk‘s involvement in negotiations, which he believes will help mitigate potential challenges.

Nvidia reported third-quarter revenue of $35.1 billion, a 94% increase year-over-year, significantly exceeding Street consensus estimates of $33.12 billion. The company delivered earnings per share of 81 cents, beating analyst expectations of 75 cents.

Prior to Nvidia’s third-quarter earnings, Ives told CNBC that the company’s pathway to a $4 trillion valuation “begins today” with a “drop the mic performance.” He emphasized Nvidia’s unparalleled market dominance, stating they are “the only game in town” in AI chip development.

The company’s Blackwell product line, which Ives highlighted as critical, is now in full production.

Why It Matters: The analyst’s commentary went beyond dry financial analysis, sprinkled with his trademark flair. In a moment that captured both his tech insight and unexpected humor, Ives even ventured into fashion advice for President-elect Donald Trump.

The earnings report marks Nvidia’s ninth consecutive quarter beating revenue estimates and eighth straight quarter exceeding earnings per share expectations.

Price Action: Nvidia’s stock closed at $145.89 on Wednesday, down 0.76% for the day. In after-hours trading, the stock dipped further by 2.53%. Year to date, Nvidia’s stock has surged 202.86%, according to data from Benzinga Pro.

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