'Nothing Short Of Amazing:' Nvidia Analysts Praise AI Chipmaker's GTC Unveilings, But Stock Dips As Investors Digest News
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) shares fell after-hours following the GTC 2024 keynote by CEO Jensen Huang, despite positive analyst feedback on the new AI chip unveilings. KeyBanc Capital Markets analyst John Vinh praised the introduction of the next-gen GPU architecture Blackwell - B100 and B200 GPUs, and the next-gen CPU+GPU super chip GB200, maintaining an Overweight rating and a $1,100 price target for Nvidia. Future Fund Managing Partner Gary Black described the stock's drop as a 'classic sell the news' scenario, highlighting the Blackwell B200 GPU's performance, which is up to 30 times faster than its predecessor, the H100 chip. The Future Fund Active ETF (NYSE:FFND) holds Nvidia as its third-biggest portfolio stock.
March 19, 2024 | 7:01 am
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NEUTRAL IMPACT
The Future Fund Active ETF, holding Nvidia as its third-biggest portfolio stock, may experience indirect impact due to Nvidia's stock movement following the GTC 2024 keynote.
Given that Nvidia is a significant holding within the Future Fund Active ETF's portfolio, any substantial movement in Nvidia's stock price, especially due to major product announcements or market reactions, could indirectly affect the ETF's performance. However, the direct impact may be mitigated by the diversified nature of the ETF's holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Nvidia unveiled next-gen AI chips at GTC 2024, including the Blackwell B100 and B200 GPUs, and the GB200 super chip, with analysts maintaining a positive outlook despite a short-term stock price drop.
Despite the after-hours stock price drop, the positive analyst feedback and the introduction of significantly more powerful AI chips suggest a strong future performance for Nvidia. The short-term price dip is seen as a 'sell the news' reaction rather than a reflection of the company's fundamentals or future prospects.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100