Nvidia Stock Recovery
Nvidia (NVDA) shares rose over 2% on Wednesday, recovering from a two-day decline where the stock fell 5% after the company’s annual GTC event failed to impress investors amid a broader market downturn.
Positive Analyst Outlook
The bounceback in Nvidia’s stock comes after analysts expressed optimism following CEO Jensen Huang’s highly anticipated GTC 2025 keynote. Many analysts reaffirmed their bullish perspectives on Nvidia’s growth and future demand for AI technology despite concerns about the longevity of AI demand and the potential impact of more efficient AI models on the need for Nvidia’s renowned GPUs.
Analysts’ Praise for Nvidia
Citi analyst Atif Malik emphasized Nvidia’s leadership in his comments, maintaining a “Buy” rating with a price target of $163, stating that the company remains “king of the hill.” Raymond James analyst Srini Pajjuri echoed this sentiment, also reaffirming a “Strong Buy” rating by expressing confidence in long-term AI demand and Nvidia’s technological advancements.
Upcoming Product Launches
During his presentation in San Jose, Huang unveiled plans for new AI chips, including the Blackwell Ultra set to launch in late 2025, the Vera Rubin superchip due in late 2026, and further advancements in the pipeline for 2027. He reiterated his belief that spending on data center hardware would soon surpass $1 trillion.
Future of AI Investment
Huang shared his expectation that trillions of dollars would be allocated to creating “AI factories,” expansive data centers designed to support AI operations. He noted that there is a significant shift from general-purpose computing to GPU-accelerated environments, projecting an increased share of capital expenditure for Nvidia moving forward.
Mixed Analyst Reactions
While some analysts remained positive, others displayed skepticism about competitive comparisons and upcoming product iterations. Jefferies analyst Blayne Curtis noted there was minimal discussion about the competitive landscape during the keynote, suggesting that while the Vera Rubin may be a modest upgrade, the following Vera Rubin Ultra will represent a more significant advancement.
Market Performance and Future Outlook
Despite the uptick in Nvidia’s stock on Wednesday, it has still decreased approximately 15% in the last month due to a larger slump in Big Tech stocks, linked to ongoing macroeconomic concerns. Huang attempted to allay fears concerning AI investment, suggesting that a recession would likely drive even more investment into AI technologies as they continue to grow rapidly.
