NVIDIA Expertise, Investment and Innovation ‘Years Ahead’ of Anybody

By Sam Boughedda

With NVIDIA Corporation (NASDAQ:) hosting its GTC, a global AI conference for developers, analysts across the board provided commentary after the keynote speech from CEO Jensen Huang and an analyst Q&A.

A KeyBanc Capital Markets analyst said in a note that their key takeaways include the company announcing its next-generation RTX 40 gaming GPUs, the Omniverse and progress on growing recurring revenues, Hopper H100 being in full production, the announcement that it is rearchitecting its next-generation auto platform Atlan, and the company disclosing Orin has 40 automotive design wins.

“Orin has 40 automotive design wins, with a total of $11B in the auto pipeline. Management remains confident regarding gaming trending back to a $2.5B run rate by 1Q, citing that the company has spent the last several quarters leaning out the channel and dismissing concerns of crypto cards flooding the market, citing strong enthusiast demand for the RTX 40,” wrote the analyst, who added that KeyBanc remain Overweight and recommend investors own NVDA.

An Oppenheimer analyst, who has an Outperform rating on Nvidia, said, “Founder & CEO Jensen Huang’s keynote today focused on NVDA’s broad hardware, accelerated computing, Omniverse, and enterprise AI platform.”

“We believe gaming is de-risked, though mixed enterprise datapoints present potential risk to DC. We view current headwinds as transitory and believe NVDA’s AI-led structural growth thesis is intact,” wrote the analyst.

Meanwhile, a Morgan Stanley analyst, who has an Equal-Weight rating and $182 price target on the stock, said they “got some insight into pricing tailwinds for the gaming business, as well as a burgeoning software and services business that will provide customers with a full-stack offering for AI, simulation development, and industrial automation programming.”

“The biggest takeaway for us is the higher price of gaming GPUs, that increases our conviction about the pace of gaming revenue recovery next year,” stated the analyst. “To be clear, we would have a position here, and we view the stock as a core holding particularly after the recent sell off, but given historical multiple contraction during periods of data center uncertainty we would leave room to add to those positions on any weakness in the next few months.”

Finally, a Rosenblatt Securities analyst, who has a Buy rating on Nvidia, said it was a strong GTC keynote, as expected.

“Nvidia’s Fall version of its GPU Technology Conference or GTC was as expected, chock-full of product launches/announcements in the silicon, software, applications, and system domains for all things AI. We do not exaggerate that Nvidia is now all things AI, because the company’s depth of expertise, investment and innovation, is years ahead; of anybody,” the analyst wrote.

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