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Markets are hoping Nvidia's big AI event this week will be a badly needed positive catalyst for the stock

Markets are hoping Nvidia's big AI event this week will be a badly needed positive catalyst for the stock

  • 17.03.2025 18:04
  • businessinsider.com
  • Keywords: danger, success

Markets are hopeful Nvidia's AI event will boost its struggling stock. Investors expect updates on GPUs and AI advancements, with experts predicting a positive catalyst for growth despite recent volatility.

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Nvidia

Nvidia

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Analyst rating: Strong buy

The article discusses Nvidia's upcoming AI event and its potential to boost the company's stock. It mentions positive analyst expectations and product launches.

Navellier & Associates

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Analyst rating: N/A

Louis Navellier, CIO of Navellier & Associates, expects a 5% increase in Nvidia shares by the end of the week.

Context

Analysis of Nvidia's AI Event and Market Implications

Market Context

  • Stock Performance: Nvidia shares were trading at $119 on March 17, 2025, down 20% from their peak of $149.42 in January 2025.
  • Event Anticipation: Investors expect updates on the next-gen Blackwell GPU and advancements in AI processing during the GTC conference.

Analyst Sentiment

  • Navellier & Associates: Predicts a potential 5% increase in Nvidia shares by week's end, highlighting expectations for major AI updates.
  • Bank of America: Raised price target to $200 from $190, citing optimism around AI advancements and quantum computing announcements.
  • Melius Research: Reiterated "buy" rating, expecting the event to bolster confidence in Nvidia's 10% QoQ growth potential.

Competitive Landscape

  • Chinese Competition: Concerns over Chinese startups like Lianjia Inc. using cheaper GPUs to rival US AI models.
  • Market Share: Focus on demand for Nvidia chips in China and competition with AMD, impacting near-term growth prospects.

Long-Term Implications

  • Product Cycle: Stacy Rasgon highlights the Blackwell GPU as potentially the "biggest product cycle" in Nvidia's history.
  • Historical Valuations: Investors note that buying at similar valuations over the past decade has historically yielded positive 12-month returns.

Regulatory and Market Trends

  • Tariff Impact: Mega-cap tech shares were hit by tariff-induced volatility, affecting investor sentiment.
  • AI Growth: Despite strong revenue and net income growth (788% in FY25 vs. FY23), stock performance has lagged, raising market questions.

Strategic Considerations

  • Cloud Adoption: Expected updates on cloud tech adoption by major companies could reaffirm Nvidia's leadership.
  • Quantum Computing: Potential announcements with quantum computing winners may further solidify partnerships and innovation.

This analysis underscores the high stakes for Nvidia as it seeks to leverage its AI dominance, navigate competitive pressures, and address market volatility. The event is seen as pivotal in shaping investor sentiment and driving future stock performance.