Shares of Nvidia Corp. (NASDAQ) experienced an uplift in premarket trading on Monday, driven by a highly impactful presentation by CEO Jensen Huang, delivered just before the commencement of Computex 2024, an annual computer expo held in Taiwan. This surge in stock price is indicative of the market’s positive reception to the company’s strategic announcements and future outlook.
During his pre-event keynote, Huang unveiled the next-generation AI accelerator, named Rubin, which is slated for launch in 2026. This new accelerator will follow the release of Blackwell Ultra in 2025. The announcement of Rubin demonstrates Nvidia’s commitment to maintaining a rapid innovation cycle and staying at the forefront of AI hardware development. By introducing new, cutting-edge technology on a consistent basis, Nvidia aims to cement its position as a leader in the AI industry.
In his presentation, Huang also touched upon several pioneering initiatives that highlight Nvidia’s broader strategic vision. One such initiative involves the creation of AI factories that will house the Nvidia Inference Micro Services (NIMS) software. These AI factories are envisioned as hubs for advanced AI computations, leveraging the full power of Nvidia’s hardware and software capabilities. Additionally, Huang introduced the concept of physical AI, which he described as the next wave of AI technology. This encompasses the integration of AI into physical systems and devices, potentially revolutionizing industries ranging from robotics to autonomous vehicles.
Pierre Ferragu, an analyst at New Street Research, praised Huang’s presentation, calling it the “best Jensen Keynote ever.” Ferragu emphasized that Huang’s speech covered critical topics that are central to Nvidia’s strategic roadmap, including the cadence of new product releases, scalability, real-world AI applications, and the development of a million-GPU data center. These elements are crucial for Nvidia as it seeks to expand its influence and capabilities in the AI sector.
The positive response to Huang’s keynote translated into tangible gains for Nvidia’s stock. Shares, which have already surged by over 120% this year, increased by an additional 2.98%, reaching $1,129.00 in premarket trading. This rise brings the stock close to its all-time closing high of $1,148.25 and intraday high of $1,158.19, reflecting strong investor confidence in Nvidia’s future performance and growth prospects.
Nvidia’s current market valuation stands at $2.696 trillion, making it the third most valuable company in the world. It follows closely behind Apple, valued at $2.949 trillion, and Microsoft, valued at $3.089 trillion. This valuation underscores Nvidia’s pivotal role in the technology sector and its significant impact on the market. The company’s advancements in AI and other cutting-edge technologies have positioned it as a key player in the ongoing technological revolution.
The surge in Nvidia’s stock price is a testament to the market’s recognition of the company’s strategic direction and its potential to drive future growth. Nvidia’s focus on innovation, as demonstrated by the upcoming Rubin and Blackwell Ultra AI accelerators, along with initiatives like AI factories and physical AI, positions the company well to continue leading in the AI industry. The market’s positive reaction to Huang’s presentation at Computex 2024 highlights the confidence investors have in Nvidia’s ability to execute its vision and sustain its growth trajectory.