Nvidia’s Stock Performance and Analyst Reactions
Nvidia (NVDA) saw its stock increase by over 2% on Wednesday, recovering from a 5% drop over the previous two days. This downturn was attributed to lackluster investor interest following the company’s annual GTC event, coinciding with a broader market decline.
Positive Analyst Sentiments Following GTC 2025
The upward movement of Nvidia’s stock came as Wall Street analysts expressed optimism after CEO Jensen Huang’s keynote at GTC 2025. Analysts reaffirmed their bullish perspectives on Nvidia, confident in the company’s potential for growth and sustained AI demand, despite ongoing concerns about the efficiency of AI models potentially diminishing the requirement for Nvidia’s renowned GPUs.
Analysts Highlight Nvidia’s Leadership
Citi analyst Atif Malik noted, “We came out of the keynote reassured in NVIDIA’s leadership which if anything seems to be expanding.” He maintained a Buy rating with a price target of $163, labeling Nvidia as “king of the hill.” Similarly, Raymond James analyst Srini Pajjuri supported his Strong Buy rating, endorsing Nvidia’s roadmap and innovations in technology.
Nvidia’s Upcoming Innovations
During his San Jose presentation, Huang announced forthcoming AI chips, revealing plans to launch its Blackwell Ultra chip in late 2025, followed by the Vera Rubin superchip in 2026, and the Vera Rubin Ultra in 2027. Huang projected substantial growth in data center spending, estimating the total addressable market for compute hardware to reach $1 trillion.
Future Investment in AI
Huang expressed confidence in the future of AI, stating, “If there’s a recession, I think that the companies that are working on AI are going to shift more — even more investment towards AI, because it’s the fastest growing.” He reinforced the notion that the transition toward GPU-accelerated computing will accelerate demand for Nvidia’s offerings.
Mixed Reactions from Analysts
While many analysts remain optimistic, some showed skepticism post-GTC. Jefferies analyst Blayne Curtis highlighted a lack of comparison between Nvidia’s GPUs and competitors, noting that the upcoming Vera Rubin might only provide incremental updates until 2027. Despite this, he affirmed his Buy rating, citing Nvidia’s sustained leadership in AI technology.
Market Context and Future Outlook
Despite the positive feedback from analysts, Nvidia faced a 3.4% decrease in shares following Huang’s keynote, contributing to a more than 17% drop over the past month amid a broader downturn in Big Tech stocks. The influx of macroeconomic uncertainties and recession fears continues to pose challenges to the market.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
