Nvidia wowed Wall Street with the breadth and depth of its artificial intelligence technologies announced late Monday. On Tuesday, Nvidia stock rose on a bullish outlook from the company's top executive.
Nvidia Chief Executive Jensen Huang kicked off the company's GTC 2024 conference in San Jose, Calif., with a two-hour keynote presentation packed with product news. The highlight was the introduction of Blackwell, the tech giant's next-generation AI computing platform for data centers.
Blackwell graphics processing units, or GPUs, deliver four times the AI training performance of their predecessor and 30 times the inference performance. And Blackwell consumes much less energy than the current Hopper platform.
"Nvidia continues to be 1-2 steps ahead of its competitors," JPMorgan analyst Harlan Sur said in a client note Tuesday. He reiterated his overweight rating on Nvidia stock.
"Nvidia is well positioned to continue to benefit from major secular trends in AI, high-performance computing, gaming, and autonomous vehicles," Sur said.
Nvidia has built a comprehensive ecosystem of semiconductors, hardware, systems and software to cement its AI leadership, Sur said. Plus, it has fostered strong industry relationships and partnerships. The who's who of tech companies attending GTC demonstrates that.
Nvidia Stock Rallies On Outlook
In morning trades on the stock market today, Nvidia stock fell as much as 3.9%. But shares rallied after Huang told analysts that he expected Nvidia to win a larger share of the roughly $250 billion spent a year for data center infrastructure.
Year to date, Nvidia stock is up 80.5%.
Susquehanna Financial Group analyst Christopher Rolland reiterated his positive rating on Nvidia stock after the announcements. He also upped his price target to 1,050 from 850.
"We view Nvidia as a pure and levered way to invest in the future prospects of the GPU, a device we believe is undergoing a renaissance," Rolland said in a client note.
Wedbush Securities analyst Matt Bryson kept his outperform rating on Nvidia stock with a price target of 1,000.
"Nvidia continues to lift the performance bar, a result that should help sustain its leadership position in the AI accelerator market," Bryson said in a client note.
Blackwell Chips Likely Supply-Constrained
Rosenblatt Securities analyst Hans Mosesmann said Nvidia Blackwell GPUs likely will be sold out well into 2025.
"The new Blackwell GPU platform, which ramps up later in 2024, is likely the most ambitious project Silicon Valley has ever witnessed," Mosesmann said in a client note. He maintained his buy rating on Nvidia stock with a price target of 1,400.
Truist Securities analyst William Stein said Nvidia's announcements are an incremental negative for rivals Intel and Advanced Micro Devices.
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