BING-JHEN HONG
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Breaking down Nvidia stock given today’s much anticipated GTC event. Bullish and bearish analyst perspectives (1:10). Highlighting CEO Jensen Huang’s GTC keynote, AI’s transformative impact on technology and computing (2:25).
Transcript
Welcome to a special episode of Investing Experts – and the first of its kind – where we highlight a notable stock of the week for investors. Today we’re diving deep into Nvidia (NASDAQ:NVDA) and its latest developments following the company’s annual GTC event.
As most of you know, NVIDIA is a leading computing infrastructure company, specializing in graphics and compute and networking solutions. Headquartered in Santa Clara, California, the company operates globally, with operations divided into two primary segments: Compute & Networking and Graphics.
Founded in 1993, NVIDIA has consistently driven innovation with its full-stack computing infrastructure, which includes hardware, software, and AI solutions. The company’s strategic focus on research and development has enabled it to build a robust ecosystem and maintain a leadership position in the technology sector.
First, let’s assess Nvidia’s position from both bullish and bearish perspectives according to Seeking Alpha Analysts. It’s worth noting that Seeking Alpha’s Quant rating currently rates the stock a Hold.
On the bullish side, Nvidia’s Q4 performance has helped reshape investor sentiment, and today’s GTC 2025 has been anticipated as a significant short-term catalyst likely to drive the stock near or beyond its 52-week highs of $150.
With Nvidia’s Blackwell GPUs scaling rapidly, some analysts see this as a strong buying opportunity amid current market conditions. Despite a downturn in shares, the underlying fundamentals remain robust, hinting at potential rebounds.
Conversely, the bearish perspective warns of potential overvaluation. The early 2025 dip has been viewed as a bubble pop on Nvidia’s AI-driven growth since 2022. Added to this are risks like heightened GPU-inspired competition and potential recession-triggered demand reductions, potentially impacting profitability. Bearish analysts caution more downside risks for Nvidia in upcoming quarters, suggesting a “sell” rating at current levels.
Shifting focus to Nvidia’s GTC event, CEO Jensen Huang highlighted artificial intelligence’s transformative impact on technology and computing.
His keynote emphasized AI’s rapid progress, necessitating significantly more computing power. This shift is evidenced by top cloud providers purchasing millions of Nvidia’s latest GPUs, underscoring the demand for AI solutions.
“AI has made extraordinary progress,” Huang said at the event, which he coined as the “Super Bowl of AI”. Now with generative AI, it has “fundamentally changed how computing is done,” the CEO added.
Nvidia’s momentum is further fueled by strategic partnerships with tech giants. As part of the keynote, Huang announced several new partnerships, including that Nvidia would team with Cisco (CSCO) and T-Mobile (TMUS) to build full-stack radio networks in the U.S. Huang also added that GM (GM) has selected Nvidia to help it build its self-driving autonomous fleet.
Huang said that the top four cloud service providers – Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, Google (GOOG) Cloud Platform and Oracle (ORCL) Cloud – have bought 3.6M Blackwell GPUs, compared to the 1.3M Hopper GPUs purchased last year.
Blackwell GPUs only just started shipping in the latter part of 2024. By the end of the decade (and perhaps sooner), Huang added that the data center build out should top $1T.
In terms of hardware advancements, Nvidia launched new GPU generations, Blackwell Ultra and Rubin, signaling their commitment to maintaining a competitive edge through innovations in memory capacity and computational power. Nvidia announced its Blackwell line of GPUs at last year’s event, though the company has run into some issues related to Blackwell, including production.
Truist analyst William Stein said – before the start of the GTC event which is running from March 17 to March 21 – that any visibility into the medium-term would be a “positive catalyst” for the stock.
Stein wrote in a note to clients: “We see an opportunity for a positive catalyst if the company were to highlight its visibility into large customer spending commitments over the next few years, much the way Broadcom (AVGO) did in its last 2 earnings calls.”
With Grace Blackwell now in full production, Huang also showed off Nvidia Dynamo. Dynamo is a distributed inference serving library, which Huang described as “essentially the operating system of an AI factory.” Dynamo can aid Blackwell (and Hopper) with a “giant leap” in inferencing performance, Huang said.
He also took the wraps off Nvidia’s next generations, including Blackwell Ultra and the widely speculated Rubin. Blackwell Ultra, which has more memory and twice the bandwidth of Blackwell, will be coming in the second half of 2025.
And Rubin, which has HBM-4 memory, will be coming in the second half of 2026. The next-generation after that, Rubin Ultra, will be available in the second half of 2027. “Rubin is going to drive the cost down tremendously,” Huang said.
Find more news about Nvidia and what the analysts are saying by going to Nvidia’s quote page on Seeking Alpha. Just type in the stock name or symbol and find a wealth of data and insight.