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Nvidia Shares rose 1% on Tuesday after CEO Jensen Huang said at an analyst conference that he expects the company to increase its share of the $250 billion data center market. The transaction was completed.
Huang’s comments came a day after NVIDIA announced its latest generation of artificial intelligence chips and new AI software platform called Blackwell.
“We can develop chips that make software work better, but without software we can’t create new markets. What makes us unique is that we’re the only company that believes we can create our own markets. “We are a leading chip company,” he said at a press conference. Tuesday meeting.
The stock had fallen about 2% before his comments caused it to rise.
Huang announced the new chip Monday at Nvidia’s developer conference in San Jose, Calif., and said it will outperform the current generation of Hopper graphics processing units that have been in high demand for running large-scale AI models. It was advertised as a more powerful processor. The first Blackwell chip is his GB200Â, scheduled to ship later this year.
“To make that possible, we had to invent some new technology,” he said while holding up one of the new chips during an interview with CNBC’s “Squawk on the Street” on Tuesday. Huang said. He estimated that each chip could cost between $30,000 and $40,000, and that the total research and development budget for the processor would be about $10 billion.
The company also announced on Monday a new enterprise software product known as Nvidia Inference Microservice that makes it easier to run older generation Nvidia GPUs.
“You’re not the only one who can fill a stadium like Jensen delivered the GTC keynote to a sold-out crowd at the SAP Center in San Jose, better than Taylor Swift,” Bernstein analysts said Tuesday. wrote in a note to investors, and continued to outperform. He rates the stock and has a price target of $1,000.
Wells Fargo analysts expressed cautious optimism on the chip maker’s announcement, reiterating their overweight rating on Nvidia stock while raising their price target to $970 from $840.
“While NVDA reiterated its emphasis on full-stack/platform differentiation, we believe some may have been expecting a little more from the Blackwell B200 launch,” the analysts wrote in a note.
Still, Wells Fargo analysts wrote that the news confirms a “long-standing positive thesis” about Nvidia’s technology and monetization opportunities.
Goldman Sachs analysts maintained a “buy” rating on Nvidia’s stock while raising their price target to $1,000 from $875 on Tuesday, citing the company’s keynote speech and raising expectations for Nvidia’s innovation, customers and partners. He expressed a “new appreciation” for the company’s relationship with Japan and its extremely important role in the field of generative AI. .
“Based on recent industry conversations, we expect Blackwell to be the fastest growing product in Nvidia’s history,” the analysts wrote in a note to investors. “Nvidia has played (and will continue to play) a critical role in democratizing AI across many industries.”
CNBC’s Michael Bloom contributed to this report.