Dan Ives calls Nvidia's correction a “short-term pullback” and hails Palantir as “the purest name in AI” amid growing market use cases – Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL)

The stock of NVIDIA Corp. NVDA has seen a significant rebound after a recent correction, with one prominent analyst suggesting the company's market capitalization could reach $4 trillion. Additionally, the analyst identified Palantir Technologies Inc. PLTR as the most “pure” AI stock.

What happened: Dan Ivesanalyst at Wedbush Securitiescalled the recent decline in Nvidia shares a “short-term setback,” in an interview with BNN Bloomberg.

He also predicted that the company's market capitalization could reach $4 trillion, putting it alongside tech giants like Apple Inc. AAPL And Microsoft Corp. MSFT as the most valuable company in the world.

When asked about Nvidia's price target, Ives suggested a $200 bullish scenario. He also congratulated the CEO of Nvidia Jensen Huang as a key figure in the AI ​​industry.

Shift attention to Palantir Technologies Inc. PLTRIves rejected the notion that the company is not at the forefront of cutting-edge technology and sales.

He highlighted Palantir's recent developments, calling the company “the purest AI name on the market in terms of use cases.” Ives expressed optimism about Palantir's future, saying “monetization is going to happen” as the industry moves into the second derivative of AI.

See also: $5.5 Trillion in Options Set to Expire on Triple Witch Friday: Why Nvidia Could Take a Roller Coaster Ride

Why is this important: The recent correction in Nvidia stock has been a cause for concern. After reaching a market capitalization of $3.46 trillion, the company suffered a significant loss, falling to $3.1 trillion. This has sparked concerns about Nvidia's influence on the S&P 500 index and the possibility of a broader market collapse.

Despite these concerns, Ives' comments on Nvidia's future potential and the growing importance of AI in the market are reassuring. This is consistent with the opinions of other experts, such as economist Jeffrey Roachwhich dismissed fears of the AI ​​bubble bursting and highlighted productivity gains from new disruptive technologies like AI.

Palantir's role in the AI ​​market has also been a topic of discussion, with Reddit users debating the company's potential as an investment alongside giants like Microsoft And Amazon.

Price action: NVIDIA Corp closed at $126.09 on Tuesday, marking a significant 6.76% increase for the day. After hours, the stock continued to climb to $127.24, up 0.91%. Since the beginning of the year, NVIDIA has seen a remarkable increase of 161.76%.

Meanwhile, Palantir Technologies Inc closed at $24.56 on the same day, with a gain of 1.66%. After hours, the stock rose slightly to $24.61, up 0.20%. Year to date, Palantir has performed strongly, up 48.13%, according to data from Benzinga Pro.

Read Next: Shiba Inu “Dogecoin Killer” Is Wobbling – Here’s What These Key Indicators Reveal About Its Near-Term Outlook

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote