NVIDIA Corporation NVDA CEO Jensen Huang gave updates on AI demand, Blackwell products and return on investment during a speech at a Goldman Sachs technology conference Wednesday.
Analysts and investors come away encouraged by the update and the timeline of Blackwell.
Goldman Sachs on NVDA: Customer return on investment, a competitive moat and the ongoing Blackwell ramp were among the key highlights from Huang's presentation for Goldman Sachs analyst Toshiya Hari.
The analyst, who has a Buy rating and $135 price target on NVDA, said Huang highlighted the current rate of innovation.
"He noted that the densification and acceleration of the $1 trillion data center infrastructure installed base alone would drive growth over the next 10 years, as it would deliver material performance improvement and/or cost savings," Hari said.
One concern about substantial AI spending by companies has been the return on investment. Huang highlighted the potential revenue benefits of such investments.
"Mr. Huang shared that hyperscale customers can generate $5 in rental revenue for every $1 spent on Nvidia's infrastructure, given sustained strength in the demand for accelerated computing."
Hari said Huang reiterating the company's timeline for Blackwell-based products to ship in the fourth fiscal quarter was among the biggest highlights of the Nvidia CEO's speech.
Wedbush on NVDA: Wedbush analyst Matt Bryson said Huang expressed optimism as investors remain concerned about potential Blackwell delays.
The analyst also highlighted a potential deal by the U.S. government with Saudi Arabia for chip exports.
"In a different report by Reuters, the U.S. government is said to be getting closer to allowing NVDA to export chips to Saudi Arabia, which would help the country train and run powerful AI models," Bryson said.
Huang's commentary at the event should be "reassuring," Bryson added.
Wedbush has an Outperform rating on Nvidia with a $138 price target.
Brad Gerstner on NVDA: Altimeter Capital founder and CEO Brad Gerstner was also present for Huang's speech and shared his thoughts with CNBC after the event.
"Demand is continuing to outstrip supply," Gerstner said of the artificial intelligence sector.
The investors said Huang's speech and recent commentary from technology leaders supports continued growth of AI and should alleviate some investor concerns.
"It is our biggest holding today," Gerstner said of Nvidia stock.
The investor said he added to his Nvidia stake when shares were disrupted in August, nearly doubling his position.
Nvidia is not limited to generative AI; it also sees multiple trillion-dollar opportunities in AI and data center CPUs, Gerstner said.
"The most important company in compute today," the investor added of Nvidia.
Why It's Important: Huang said demand for Blackwell chips is so immense that customers are becoming frustrated and tensions are rising due to the supply.
"The demand on it is so great, and everyone wants to be first and everyone wants to be most," Huang said. "We probably have more emotional customers today."
Huang said Nvidia is "trying to do the best we can."
The Nvidia CEO thanked suppliers like Taiwan Semiconductor Manufacturing TSM, who is also trying to keep up with supply. When discussing concerns of supplies being impacted by geopolitical tensions, Huang said the company could switch suppliers.
Demand for Nvidia products and the high expectations from investors wasn't lost on Huang during his speech.
"We have a lot of people on our shoulders, and everybody is counting on us."
NVDA Price Action: Nvidia shares trade at $117.24 versus a 52-week trading range of $39.23 to $140.76. Nvidia stock is up 144% year-to-date in 2024.
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