Dan Ives believes investors worrying about periodic slowdowns in artificial intelligence spending are missing the bigger picture.

Speaking on The Real Eisman Playbook, the longtime technology bull compared today’s AI infrastructure boom to “building out the Vegas strip [in] 1955,” arguing the industry is only in year three of what he sees as an eight- to 10-year transformation.

‘Gut Check Moments’

While investors will inevitably experience several “gut check moments” each year over capital spending, monetization and valuations, Ives said those debates are part of building a new technological foundation rather than signs the AI boom is ending.

Expanding on the analogy later in the discussion, Ives said today’s hyperscalers are effectively racing to secure the best real estate before the AI economy fully matures. Just as companies that built early on the Las Vegas Strip ultimately controlled the most valuable locations, he argued cloud providers investing in data centers and compute infrastructure today are laying the groundwork for the next decade of AI growth.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.