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 18:25
  • msn.com
  • Keywords: AI, GPU

Markets hope Nvidia's AI event will boost its struggling stock as investors seek updates on its Blackwell GPU and other projects. Analysts expect key developments in AI, cloud computing, and quantum computing, with many predicting a rebound for Nvidia shares despite recent volatility.

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Estimated market influence

Nvidia

Nvidia

Positivesentiment_satisfied
Analyst rating: Strong buy

Markets are hopeful that Nvidia's AI event will boost its stock price.

Navellier & Associates

Positivesentiment_satisfied
Analyst rating: N/A

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

Bank of America

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Analyst rating: —

Bank of America raised its price target for Nvidia stock to $200 from $190.

Melius Research

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Analyst rating: N/A

Melius Research reiterated its 'buy' rating ahead of the GTC conference.

Bernstein Research

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Analyst rating: N/A

Stacy Rasgon, senior analyst at Bernstein Research, is bullish on Nvidia stock heading into the GTC conference.

Context

Analysis and Summary: Nvidia's AI Event and Market Implications

Overview

  • Event Focus: Markets are expecting updates on Nvidia's next-gen Blackwell GPU and other AI-related projects at its annual GPU Technology Conference (GTC).
  • Stock Performance: Nvidia shares dropped 20% from their January high of $149.42 to around $119, amid market volatility and concerns over AI growth.

Expert Opinions

  • Louis Navellier (Navellier & Associates):
    • Predicts a minimum 5% stock increase by week's end.
    • Expects major updates on AI advancements and quantum computing partnerships.
  • Bank of America:
    • Raised price target to $200 from $190.
    • Anticipates key updates on AI, cloud projects, and automotive AI outlook.
  • Melius Research:
    • Reiterated "buy" rating, expecting confidence in Nvidia's 10% QoQ growth.
    • Highlighted Nvidia's dominance in regenerative AI and potential long-term growth.

Market Expectations

  • Investor Focus:
    • Updates on Blackwell GPU and its successor.
    • Demand for chips in China and competition with AMD.
    • Automotive AI partnerships and 2026 growth projections.
  • Historical Valuations:
    • Nvidia's forward PE is 41% lower than pre-ChatGPT levels.
    • FY25 net income up 788%, revenues up 384% since FY23.

Competitive Dynamics

  • Quantum Computing:
    • Expected announcements on quantum computing collaborations.
  • Automotive AI:
    • Focus on partnerships and future growth in the automotive sector.

Long-Term Effects and Industry Implications

  • AI Growth:
    • Potential for reaffirming Nvidia's leadership in regenerative AI.
    • Blackwell GPU expected to drive significant revenue, possibly the "biggest product cycle" in company history.
  • Market Volatility:
    • Concerns over tariff-induced market fluctuations and Chinese AI competition.

Strategic Considerations

  • Investor Sentiment:
    • Investors are anxious about AI's future after a Chinese startup's claims of creating competitive models using older GPUs.
  • Historical Performance:
    • Nvidia shares have historically performed well at similar valuation levels over the past decade.