Benzinga - by Shanthi Rexaline, Benzinga Editor.
Ahead of Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang‘s GTC 24 keynote on Monday, an analyst predicts a big week for tech.
What Happened: The GTC conference, both online and in-person, is dubbed the “AI Woodstock” by analyst Wedbush analyst Daniel Ives. “With the AI Revolution now here, it all starts with the ‘Godfather of AI’ Jensen and Nvidia as this highly anticipated conference will be a launching pad for a number of products, use cases, [and] partnerships to launch the next phase of the AI Revolution on display,” he said in a note.
Ives reiterated his prediction of a trillion-dollar AI spending wave triggered by Nvidia’s chips.
The focus will be on details and pricing of the new Blackwell B100 chip, teased in November 2023, as per Ives. The B100 promises to surpass Nvidia’s current H200 chip in power.
“At this point, the demand trajectory for AI is undisputable with eye-popping Capex numbers from hyper-scale and Big Tech players Microsoft, Google, Amazon, Oracle, and Meta among others speaking to the transformational spending around AI with Nvidia leading the way,” the analyst said.
This week is crucial for companies to discover AI use cases and forge partnerships, as per the analyst.
Ives estimates AI budgets will reach 8-10% in 2024, a significant jump from less than 1% in 2023. He reiterates that every dollar spent on Nvidia’s H100 GPU could generate $10-$12 in spending across software, IT services, and infrastructure.
Why It’s Important: Nvidia, a leader in the AI revolution, has thrived since 2023, coinciding with ChatGPT’s popularity. The company’s performance and stock price have improved significantly.
On a 10-week winning streak, the stock has surged nearly 73% this year. This surge has placed Nvidia third in market cap, behind only Microsoft and Apple.
GTC 2024 is expected to further propel Nvidia’s stock.
Nvidia settled Friday's session down 0.12% at $878.36, according to Benzinga Pro data.
Read Next: After Nvidia’s Record 10-Week Winning Run, Analyst Says Investors Will Pay Attention To What’s Next For AI Ecosystem At Upcoming Week’s GTC 2024
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