Goldman Sachs analyst Toshiya Hari reiterated a Buy rating on the shares of Nvidia Corp
Huang highlighted that the amount of data and required computation has grown exponentially, leading to a growing power consumption in data centers.
By augmenting the CPU with a GPU, data centers can speed up workloads by orders of magnitude with a much smaller increase in power and cost.
Huang reiterated Nvidia's commitment toward introducing a new product every year, not only in GPUs, but also across the entire data center hardware stack, including CPUs, NVLink switches and InfiniBand/Ethernet networking switches.
Huang announced plans to introduce the Blackwell Ultra GPU in 2025 and the Rubin GPU as well as the Vera CPU (i.e. successor to the current Grace CPU) in 2026.
The analyst noted Nvidia's ability to innovate at the data center level on a one-year cadence will make it increasingly difficult (and/or expensive) for others to compete effectively.
In order to develop the next generation of robots, Huang highlighted that leading organizations are adopting NVIDIA Omniverse and NVIDIA Isaac platforms to drive the transition towards robotics and industrial digitalization.
The CEO also stressed that there are already 200 AI PCs in the market with Nvidia's RTX GPUs with an installed base of 100mn units, and announced new technologies to power AI assistants and digital humans running on RTX AI laptops.
The keynote speech by the CEO reinforces the analyst's view that Nvidia will remain the accelerated computing industry standard for the foreseeable future.
Nvidia has extended its competitive advantage through its R&D scale and inherent virtuous cycle rooted in the large GPU installed base it has built over the past few decades, said the analyst.
The analyst expects positive revisions to Street EPS to drive continued outperformance.
BofA Securities analyst Vivek Arya reiterated a Buy rating on the shares and raised the price target from $1,320 to $1,500.
The analyst justifies the price target with stronger growth opportunities ahead as gaming cycle troughs and data center demand potentially faces strong, long-term demand dynamics.
Weakness in consumer driven gaming market, competition with major public firms, internal cloud projects and other private companies in accelerated computing markets, and unpredictable sales in new enterprise, data center, and autos markets, are considered as potential threats, according to the analyst.
While convincing use cases could take another 1-2 years to emerge, the chip upgrades in smartphones/PC, spurred by competition between consumer hardware could jump-start in 2H24, leading to an AI edge, said the analyst.
According to the analyst, semi cycles are usually around 3.5 years, with 10 up and 4-5 down quarters. The current upcycle started in late '23, implying strength likely till mid-26E, noted the analyst.
Price Action: NVDA shares are trading higher by 3.82% at $1,138.19 at the last check Monday.
