Wedbush analyst Dan Ives has underscored the significant influence of $NVIDIA (NVDA.US)$'s expansion on the tech industry, stating that every dollar spent on the company's chips generates $8 to $10 in the rest of the sector.

What Happened: On Monday, while appearing on CNBC's Squawk on the Street, Ives explained the ripple effect of Nvidia's success throughout the tech industry.

Ives noted that tech stocks were up another 15%, he said that even though the rally was led by 'Godfather of AI' Jensen Huang, the "multiplier for every dollar spent on an Nvidia chip — $8-10 flows into rest of the tech."

He also pointed out that some tech firms feel the strain, especially those lacking the necessary resources and expertise.

Comparing this moment to the pivotal tech boom of 1995 rather than the bubble of 1999, Ives said, "It's a 1995 moment, not a 1999 moment," expressing his sustained bullishness for tech stocks. Ives compared the current situation to a party, $Apple (AAPL.US)$, Nvidia, and $Microsoft (MSFT.US)$ playing pivotal roles.

"Apple is now on the dance floor at the AI Party with Nvidia and Microsoft still running the show as DJs....but it's only 9 pm and this AI Party goes till 4 am in our view," he said. When questioned about the longevity of this tech bull market, Ives forecasted a two-year run.

Apple is now on the dance floor at the AI Party with Nvidia and Microsoft still running the show as DJs....but it's only 9 pm and this AI Party goes till 4 am in our view  @SquawkStreet  

— Dan Ives (@DivesTech) July 1, 2024

Why It Matters: The tech sector has been buzzing with excitement as industry giants race towards a $4 trillion market cap The AI revolution is just beginning, and the second half of 2024 promises even more thrills.

Nvidia's stock had seen a significant rebound after a recent correction, with Ives suggesting that the company's market cap could reach $4 trillion. He has also identified $Palantir (PLTR.US)$ as the "purest" AI stock in terms of use cases.

Last week, Peter Thiel, while speaking at the Aspen Ideas Festival, drew parallels between the dot-com bubble of '99 and the current state of AI. He went on to say that Nvidia is capturing 80-85% of the revenue in the AI sector, something Thiel found "very strange." This is because most of the profits are being generated at the hardware level, an area "Silicon Valley doesn't even know much about anymore."

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