Nvidia Corp.NVDA experienced a dip in after-hours trading on Monday during the GTC 2024 keynote by CEO Jensen Huang. Despite this setback, analysts showered praise on the developments revealed at the event.
The Revelation
What Happened: In his keynote, Huang met expectations, according to KeyBanc Capital Markets analyst John Vinh. The key highlights include:
- Unveiling the next-gen GPU architecture Blackwell – B100 and B200 GPUs, boasting a chip size twice that of H100.
- Introducing a 40% increase in pricing for the Blackwell GPU architecture compared to the previous H100, priced at $35,000.
- Anticipating AI performance for B100 to be 2.5 to 5 times superior to H100.
- Debuting the next-gen CPU+GPU super chip GB200 as the successor to GH200.
- Refraining from revising the total addressable market estimate of $1 trillion, against expected growth.
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Vinh expressed optimism: “These announcements strengthen NVDA’s leadership in generative AI, and we anticipate the enhanced performance of these new products to drive substantial earnings growth. He bestowed Nvidia with an Overweight rating and set a $1,100 price target for the stock.
Market Response
Classic Sell The News, Says Black:
Despite the post-keynote stock downtrend, Future Fund’s Gary Black labeled it as a “classic sell the news” occasion.
Reflecting on Huang’s unveiling of Nvidia’s new flagship AI chip, the Blackwell B200 GPU, which outpaces its predecessor H100 by up to 30 times, Black gushed, “was nothing short of amazing.”
The Future Fund Active ETF, managed by the Future Fund, positions Nvidia as the third-largest value-holding within its portfolio.
Closing Monday’s session with a 0.70% climb to $884.55, Nvidia’s stock witnessed a 1.76% slump to $869, based on Benzinga Pro data.
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