Science & Technology

Nvidia Faces High Investor Expectations at AI Conference

Next week Nvidia Corp. will hold an annual conference on artificial intelligence, but already now this developer of advanced chips is facing high expectations regarding the news at the planned event.

Nvidia Faces High Investor Expectations at AI Conference

Investors are convinced that the mentioned company will make statements about its activities and product line, which will become a factor of effective impact on the dynamic of the indicator of the cost of its shares. Expectations of an increase in the price of Nvidia securities are very high, which could potentially even become a kind of source of pressure on the developer of next-generation microcircuits.

The specified company has been hosting the Nvidia GTC event since 2009, which was originally dedicated to GPU technologies. Over time, this public initiative of the cut-edging chips developer transformed into a global conference on artificial intelligence. This event is attended by representatives of the AI industry, including developers, researchers, engineers, inventors, and IT specialists.

In the current year, the conference on artificial intelligence will be held from March 18 to 21. Nvidia CEO Jensen Huang will speak on the first day of the event. Many experts believe that during the conference, which will be held in San Jose, California, he will make statements that will allow the company’s share price to exit the volatility zone and return to a growth trajectory of more than 80% in 2024. It’s worth noting that these are assumptions, not something that is guaranteed to happen.

Ted Mortonson, the technology desk sector strategist at Robert W. Baird & Co, says that Jensen Huang’s statements can be a huge catalyst for Nvidia securities, as his expected speech is likely to provide a lot of information, including global issues. The expert compared the artificial intelligence conference with the annual presentation of new Apple products.

Traditionally, the concept of Jensen Huang’s performance at the mentioned event provides for two main thematic parts. The head of Nvidia presents the company’s new products and talks about his vision for the development of the technology sector as a whole, including the global aspects of the relevant process. Next week, he may present innovative developments to the public that can replicate the incredible success of the H100 chips designed for use in data centers. If the debut of new products with impressive characteristics takes place, Nvidia will strengthen its position in the microcircuits market, which in the current configuration is a kind of huge profit space for those players who can offer advanced solutions.

Nowadays, the company headed by Jensen Huang is receiving increased attention. Nvidia has recently demonstrated something that fully corresponds to such a concept as a success story. The company’s market capitalization has reached the historical mark of $2 trillion. However, this week Nvidia’s share price turned out on a downward trajectory. The corresponding indicator showed the worst two-day drop in five months. This trend is partly due to the positioning of traders before the artificial intelligence conference. Investors are paying an increasing premium for calls to profit from the company’s rising share price. Ted Mortonson says that there is currently no certainty as to how Jensen Huang’s statements will affect the dynamic of the indicator of the price of Nvidia securities.

Analysts at Bank of America, led by Vivek Arya, called the upcoming AI Woodstock conference, emphasizing through the use of this symbolic definition the significance of the event. They also raised Nvidia’s target price to $1,100 from $925.

Analysts at Bank of America say that even after the stunning success of the last 12 months, the developer of advanced chips continues to maintain the potential for further growth. Currently, the company’s shares are trading at a lower multiple compared to the figure recorded in November 2022 at the time of the launch of ChatGPT from OpenAI.

Wall Street also has a predominantly positive attitude towards the artificial intelligence conference. TD Cowen analyst Matthew Ramsay expressed his confidence where the level of demand is higher than almost all forecasts.

At the same time, Nvidia shares are trading near technical overbought levels, which may cause another pullback. In this case, sudden movements in any direction can become a factor affecting the entire market.

Chris Carey, portfolio manager at the Carnegie Investment Council, says that Nvidia is currently a brand with very high expectations.

Nowadays, the developer of advanced chips is in a zone of increased excitement and provokes certain concerns that may arise when success turns out to be dizzying and exceeds all expectations. If Nvidia introduces fundamentally new products next week or Jensen Huang makes reasonable optimistic statements about scenarios of the future, the positive momentum will continue.

As we have reported earlier, Nvidia Reports Earnings.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.