Nvidia presented at the largest conference of artificial intelligence, GTC, which was held in Silicon Valley (California, USA), a powerful chip aimed at artificial intelligence (AI) with which it hopes to boost its weight in this market. However, investors did not meet that expectation: shares fell on Wall Street up to 2.6% in premarket.
Nvidia did what was expected, but nothing more“says Russ Mold, chief investment officer at AJ Bell.
The founder and CEO of the company, Jensen Huangpresented this technology on Monday, the new Blackwell computing platform, a new high-end graphics chip aimed at AI.
Besides, Nvidia also announced its AI supercomputer next generation, the Nvidia DGX SuperPOD, capable of large-scale processing of billion-parameter models with constant uptime.
During his speech to more than 11,000 attendees, the manager explained the potential it can offer to computer level this new chip and its application in software, services, robotics, medical technology, etc. and more.
This platform enables real-time generative AI to be unleashed on large language models with trillions of parameters.
The Santa Clara company has become the undisputed leader of artificial intelligence (AI) and one of the market drivers during 2023 and so far this year. His upward trend has led her to up 79% so far in 2024 in bag and rebounds 244% in the market in the last twelve months.
Nvidia: what analysts think
“Stocks have rallied strongly since early 2023, including more than 80% progress this year alone. It is essentially about investors valuing the perfection of the company and, therefore, if it only meets expectations instead of exceeding them with events like their GTC event, Stocks could find it harder to continue rising“Adds Mold.
“The arrival of a new and more powerful chip was already discounted. But if Nvidia bulls don’t take the opportunity to push the price up, Maybe it’s because the rally is reaching its exhaustion at the mark of $1,000 per share,” assesses Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
In this sense, strategists highlight that this is a problem that most stock market superstars experience along the way. “Its success means that the bar is always set at the highest level and, sometimes, it is impossible to overcome it,” they indicate in AJ Bell.
Nvidia is the main visible face of AI, although Competition is intensifying in the sectorwhich places the company under pressure to constantly innovate and be one step ahead of the game.
“Nvidia needs to sell the new chips and software tools in bulk and get customers to demonstrate that they make a difference. As far as he’s concerned, the hype is real. However, It is very difficult to maintain such high levels of growth quarter after quarter“Mould emphasizes.
“In any case, The company hopes to continue maintaining its leadership in the market thanksin other aspects, to the agreements signed with some of the main players in the sector such as Amazon, Alphabet, Microsoft and Oracle“, they emphasize in Bankinter.
Thus, Wells Fargo has raised its price target to $970 per share from the previous $840 and reiterates its ‘overweight’ recommendation the value.
Source: Ambito
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