Tuesday afternoon saw a 1% gain in Nvidia shares, which had earlier fallen following CEO Jensen Huang’s statement in an analyst briefing that the company anticipated growing its portion of the $250 billion annual data center market. A day after the business unveiled its new Blackwell AI processors and AI software platform, Huang made these remarks.
“Building processors to improve software performance is possible, but software is necessary to launch a new market. We stand out from the competition because, in my opinion, no other chip firm will develop its own market,” he stated in the meeting. ” At Nvidia’s developers conference in San Jose, California, on Monday, Huang unveiled the new processors.
He boasted that they were even more potent than the current generation of Hopper graphics processing units, which have been in great demand for processing complex AI models. Later this year, the GB200, the first Blackwell chip, will be shipped. Holding up one of the new chips, Huang said, “We had to invent some new technology to make it possible,” during an interview with CNBC’s “Squawk on the Street” on Tuesday.
According to his estimation, the cost of a single chip might range from $30,000 to $40,000, and the processor’s R&D budget was approximately $10 billion. Nvidia Inference Microservice, a new enterprise software product that the company unveiled on Monday, facilitates the use of earlier Nvidia GPU generations.
“Jensen gave his GTC keynote to a full house at the SAP Center in San Jose; move over Taylor Swift, you’re not the only one that can sell out a stadium,” Bernstein analysts stated in a note to investors on Tuesday, while onto their outperform rating and $1,000 price objective for the company. In response to the chipmaker’s release, Wells Fargo analysts expressed cautious optimism, maintaining their overweight rating on Nvidia shares and raising their price target to $970 from $840.
In a note, the analysts said, “We believe some may have expected a bit more out of the Blackwell B200 launch, even though NVDA once again highlighted its full stack / platform differentiation.” Nevertheless, the announcement supported the Wells Fargo analysts’ “long-standing positive thesis” about Nvidia’s technology and revenue prospects. After the firm’s keynote, Goldman Sachs analysts maintained their buy rating on Nvidia stock and increased their price target for the business to $1,000 from $875.
They also expressed “renewed appreciation” for Nvidia’s innovation, partnerships with partners and customers, and crucial role in the generative AI field. In a note to investors, the analysts stated, “We expect Blackwell to be the fastest ramping product in Nvidia’s history based on our recent industry conversations.” “Nvidia has contributed significantly—and will continue to contribute significantly—to the democratization of AI across numerous industry verticals.”