Nvidia Corp. (NASDAQ: NVDA) is on an impressive streak, having closed higher for a record ten consecutive weeks. The stock may see further gains this week as the company hosts its GPU Technology Conference (GTC) 2024, featuring CEO Jensen Huang delivering the keynote between 4 p.m. EDT and 6 p.m. EDT on Monday. This conference will be a hybrid event, offering both in-person and virtual attendance options, and will take place at the SAP Center near the San Jose McEnery Convention Center in San Jose, California.
Anticipation for the event is high, with Nvidia promoting the keynote as an exploration of the AI advancements shaping the future. Stifel analyst Ruben Roy, in a CNBC interview, expressed expectations for extensive discussions on the product roadmap. Roy noted Nvidia’s accelerated pace in introducing new products to the market, highlighting the company’s evolution beyond being solely a chip manufacturer to encompassing a broader range of systems, software, and networking solutions.
Roy emphasized the growing coherence in Nvidia’s AI offerings, emphasizing that it’s not just about hardware anymore. He referred to Nvidia as a comprehensive ecosystem, encompassing hardware, software, and networking capabilities. The analyst anticipates a thorough discussion on Nvidia’s AI ecosystem and looks forward to the company’s future roadmap.
In summary, Nvidia’s stock continues its upward trajectory, bolstered by the upcoming GTC 2024 and expectations of significant revelations regarding the company’s AI advancements and product roadmap.
Regarding the continuation of Nvidia’s upward trajectory, Roy emphasized the importance of the ecosystem. He highlighted the company’s increased revenues and margins, attributing these gains to the significant integration of software into Nvidia’s system sales.
Nvidia’s expansion into cloud services and the introduction of concepts like AI factories, which encompass both hardware and software components, were noted by Roy as key strategic moves. Professional investors, particularly those on the buy side, will closely monitor Nvidia’s plans for further ecosystem development and its strategy to capitalize on the rapidly expanding total addressable market (TAM). According to Nvidia, compute represents a trillion-dollar TAM opportunity, with general-purpose compute transitioning from standard processors to GPUs and other accelerated computing solutions.
Despite broader market fluctuations, Nvidia shares have exhibited resilience, rising 0.35% last week while the tech-heavy Nasdaq Composite Index retreated by 0.7% and the S&P 500 Index edged down by 0.1%. Year-to-date, Nvidia’s stock has surged by an impressive 72.80%, positioning it as the second-best performing S&P 500 stock after Super Micro Computer and the top-performing stock in the Nasdaq 100.
Closing at $878.36 at the end of Friday’s session, according to Benzinga Pro data, Nvidia’s stock reflects its ongoing strength and investor confidence amidst a dynamic market landscape.