Nvidia’s GTC AI Conference: What to Expect and the Company’s Future Potential
Ahead of Nvidia’s highly anticipated GTC AI conference, Bernstein Managing Director and Senior Analyst Stacy Rasgon predicts that the event will be a big hit for the company. While some investors fear that the hype surrounding the conference may be too much to live up to, Rasgon believes that the event will be exciting and that there will be a lot of new information released.
The Next Generation Product Blackwell
The biggest piece of news that investors are waiting for is Nvidia’s Next Generation products, codenamed Blackwell, which the company calls b00. Investors want to know how much better this product is compared to the current products, the product timeline, and how much growth there is in Nvidia’s market share. Although the hype is high, the possibility of a sell the news event is real, but Rasgon believes that regardless of the hype and the outcome of the conference, Nvidia’s stock has the potential to reach high levels over time.
The Goldilocks Tenor and Nvidia’s Upside
Nvidia has been experiencing success upon success, and the GTC AI conference can potentially get them to their $1,000 per share price target. However, Rasgon notes that a stock split would be more psychological than pragmatic as fractional shares are already available for purchase. He also says that it does not matter if the stock split or not as it’s not the most important factor in gaining profits. Nvidia’s upside, according to Rasgon, is driven by the opportunities found in the early stages of generative AI and language models. It is an enormous industry, and the amount of computing power required is massive. Nvidia can still expand.
Nvidia Does Not Want Political Interference
Nvidia may face political implications due to sanctions and export controls that have already been imposed. However, Rasgon notes that this is not new, as AI has become a more significant issue for national security, and countries like China are already creating their AI infrastructure. Nvidia will have to follow the rules, but there are still opportunities to sell their products to sovereign entities.
Hot Take
The hype surrounding Nvidia’s GTC AI conference is high. Investors have high hopes for new information coming from the conference, especially about Nvidia’s Next Generation products and the company’s future growth. While there may be a risk of a sell the news event, Rasgon believes that the conference will be a huge success for the company. He sees significant opportunities in early-stage generative AI and language models, and Nvidia has a product roadmap and runway that offers a bright outlook. Despite the potential for political interference, Rasgon believes that the company still has more growth to come.
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