Nvidia Stock Rises as Analysts Laud Gtc and Declare That Generative AI Exists

Nvidia Stock

Nvidia (NASDAQ:NVDA)

Several important new collaborations were announced at Nvidia’s GTC developer conference. Wall Street analysts were impressed, sending Nvidia (NASDAQ:NVDA) stock up more than 2.5% on Wednesday.

Analyst Vivek Arya from Bank of America, who gave the business a buy rating and boosted the price target per share from $275 to $310, said that CEO Jensen Huang’s keynote talk “fundamentally” broadened the company’s competitive moat and expanded its potential to the “multi-trillion” IT and infrastructure as a service market.

NVDA’s “dominance in the fledgling generative AI/large language model market that might change the current tech sector and bring in innovative entrepreneurs,” Arya wrote in an investor note, referring to the keynote’s ambitious scope.

The analyst also mentioned Nvidia’s ties with Amazon, Microsoft, Google, and Oracle as examples of how the company’s scale, breadth, and ambition might facilitate the introduction of massive language models to “virtually every end-market”.

As Nvidia brings both hardware and software to the table to improve efficiency in the data center, both in terms of cost and power, while CPUs are progressively falling behind, accelerated computing is now a reality, according to Bernstein analyst Stacy Rasgon.

Rasgon further pointed to the recently revealed L4 (for AI video), L40 (for AI picture generation), H100 NVL (for big language models), and Grace Hopper (for recommender engines) as evidence that generative AI may provide positive results in the short and long term.

“For better or worse, we keep coming to the conclusion that NVDA is the solution as their technology is particularly designed to handle the large increase in compute intensity generative AI generates,” stated Rasgon, who has Nvidiaan outperform rating. Nevertheless, the huge TAM estimates the corporation has given forth are becoming less implausible daily.

Nvidia is the “king” of generative AI, according to Barclays analyst Blayne Curtis, who has an overweight recommendation on the business.

The largest secular tailwind in Tech is here. NVDA is still miles ahead of the competition despite the “clearly anticipation were quite a high heading into GTC,” as Curtis noted.

With $14B in design wins in the car pipeline (up from $11B). Cloud services opening up a new growth path, Srini Pajjuri, a strong buy on Nvidia shares analyst at Raymond James, commended the company’s automotive and cloud services activities.

Based on the $2.23B in cloud-related purchase commitments over the next four to six years, Pajjuri estimated that cloud service offerings offered [approximately $1B per year] additional revenue potential in the next 2-3 years.

Due to increasing demand, on Tuesday, Nvidia allegedly boosted the order for AI-linked chips through Taiwan Semiconductor.

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