Benzinga - by Shanthi Rexaline, Benzinga Editor.
Nvidia Corp. (NASDAQ:NVDA) shares fell in after-hours trading on Monday during the GTC 2024 keynote presentation by CEO Jensen Huang. A bullish analyst weighed in on the announcements made at the event.
What Happened: Huang’s keynote was largely in line with expectations, according to KeyBanc Capital Markets analyst John Vinh in a note published Tuesday. The highlights of his address, as noted by the analyst, are as follows:
- Introduction of the next-gen GPU architecture Blackwell – B100 and B200 GPUs, with chip size two times that of H100.
- Announcement of a 40% higher pricing for the Blackwell GPU architecture relative to the previous iteration, the H100, which was priced at $35,000.
- Expectation of AI performance of B100 to be 2.5 to five times greater than H100.
- Introduction of the next-gen CPU+GPU super chip GB200, the successor to GH200.
- Maintenance of the total addressable market estimate at $1 trillion against expectations for an increase.
“We’re encouraged by these announcements as we view them as reinforcing NVDA’s leadership position in generative AI and anticipate the ASP performance uplift from these new products will sustain outsized earnings growth,” said Vinh. The analyst has an Overweight rating and a $1,100 price target for Nvidia stock.
Classic Sell The News, Says Black:
Following the after-hours drop in stock, Future Fund Managing Partner Gary Black described it as a “classic sell the news” scenario.
“Jensen Huang's GTC keynote address and unveil of NVDA's new flagship AI chip, the Blackwell B200 GPU, which can perform up to 30 times faster than its previous flagship H100 chip, was nothing short of amazing,” he said.
The Future Fund’s flagship exchange-traded fund – the Future Fund Active ETF (NYSE:FFND) – holds Nvidia as the third-biggest portfolio stock in terms of value.
After closing Monday’s session up 0.70% at $884.55, the stock last traded down 1.76% at $869, according to Benzinga Pro data.
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Latest Ratings for NVDA
| Mar 2022 | Goldman Sachs | Reinstates | Neutral | |
| Feb 2022 | Summit Insights Group | Downgrades | Buy | Hold |
| Feb 2022 | Mizuho | Maintains | Buy |
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