Jetmek_03052
3 minutos hace
Nvidia's Disconnect: An Improving Business With a Cheaper Stock -- Barrons.com
Dow Jones Newswires March 21, 2025 12:37:00 PM ET
Nvidia CEO Jensen Huang was resolute. At his company's annual GTC developers conference this past week in San Jose, Calif., he laid out a compelling vision for the artificial-intelligence industry while presenting an aggressive road map of coming products from his company. The announcements could leave chip rivals racing to catch up for years to come.
As I walked around the GTC exhibit floor, there was a palpable sense of excitement, with hundreds of people lining up for sessions and panels to hear about the latest AI advances in everything from robotics and healthcare to cutting- edge water-cooled server designs.
Yet, there is a disconnect. Despite the enthusiasm for the future of AI and how Nvidia semiconductors are central to it all, Nvidia shares have treaded water, trading at just 26 times forward price-to-earnings. That's an undemanding valuation for a company projected to boost revenue by 57% this year.
It's driven by three concerns: that AI chip demand could soften after the release of Chinese start-up DeepSeek's efficient models; rising chip competition from Broadcom; and uncertainty over President Donald Trump's threats to put tariffs on chip imports.
At GTC, Huang confidently addressed all three issues, arguing that none of them would impede Nvidia's bright prospects.
With respect to DeepSeek, Huang was particularly defiant, pushing back on the notion that DeepSeek would hurt demand for graphics processing units, or GPUs. During his GTC keynote address on Tuesday, he said the reasoning capability in DeepSeek's AI model, which takes more time to reflect before arriving at a higher-quality answer, is driving a substantial increase in demand for compute resources. That type of reasoning is increasingly used in most of the top AI models.
"Almost the entire world got it wrong," Huang said. "The amount of computation we need at this point as a result of agentic AI, as a result of reasoning, is easily 100 times more than we thought we needed this time last year."
It's a stunning point: One hundred times more compute needed than Nvidia expected just 12 months ago should put to rest questions about near-term demand.
The noise has grown louder when it comes to AI chip competition, as Broadcom CEO Hock Tan frequently tells Wall Street that his company will gain its "fair share" of the AI chip market by 2027 by helping large technology companies design their own AI semiconductors called application-specific integrated circuits, or ASICs.
At GTC, Huang pushed back. "A lot of ASICs get canceled," he replied when I asked him about Broadcom following his Tuesday GTC keynote. "The ASIC still has to be better than the best. How do they know it's going to be the best, so that it will be deployed in volume?"
The clear subtext? Broadcom's offerings won't be competitive with Nvidia.
Broadcom didn't respond to a request for comment about Huang's remarks.
On the question of tariffs, Huang said at a press event Wednesday that he isn't expecting a significant impact on the company's financials or outlook. He said Nvidia has an agile network of suppliers and can move orders to lower- tariff countries as needed, adding that Nvidia plans to bring more manufacturing to the U.S. over time.
In general, Nvidia made the case that the overall market opportunities for AI and AI data center infrastructure are expanding rapidly. Huang expects the industry will spend roughly $500 billion on data center capital expenditures this year, rising to more than $1 trillion by 2028, with Nvidia's GPU chip business gaining a larger share of the spending in the coming years.
Part of that will come from the growing number of Nvidia GPUs inside data centers. These so-called superclusters have grown from 16,000 GPUs to over 100,000 GPUs during the past year. Huang told me he's confident that several million GPU clusters would be built by 2027.
Then there's robotics. Nvidia executive Rev Lebaredian told me we're just at the beginning of an exponential ramp- up in the development of AI robotics. The combination of rising computing power and smarter AI models is making large advances in robotics possible. He believes there will be millions of humanoid robots in use, especially by industrial companies, within five years. I have no particular insight into whether robots are, in fact, imminent. But if it happens, it's one more degree of upside for Nvidia, which makes the hardware brains for robots.
Ultimately, the biggest development from GTC was Nvidia's aggressive product road map. During his keynote, Huang announced that the company's Blackwell Ultra AI server, available later this year, would outperform the current model by 50%. Then he said that the Vera Rubin AI server, scheduled for the second half of 2026, would be 3.3 times faster than Blackwell Ultra. The showstopper was the unveiling of the Rubin Ultra AI server -- set for late 2027 -- with 14 times the performance of Blackwell Ultra. That figure drew gasps from the audience.
Somehow, Nvidia stock barely moved on the news and closed lower on Tuesday amid a general market decline. As a longtime Nvidia watcher, I'm confounded by the lack of enthusiasm from Wall Street. The tech crowd understood the significance; eventually investors will, too.
JJ8
2 días hace
Trend Analysis
NVDA appears to be improving within a longer-term upwards trend. Although it is presently below its 200-day moving average, that average is rising, due to prior gains in NVDA shares. Additionally, the MACD histogram, which is used to measure the near-term trend, is above 0. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500.
Momentum for NVDA is improving. The 14-period Slow Stochastic Oscillator is rising as investors begin to purchase shares.
Today's volume is on track to be lighter than usual, with 200,253,557 shares having traded so far. The On Balance Volume indicator (OBV) shows that longer term selling pressure has given way to near term accumulation by traders.
As of 3:17 PM ET Wednesday, 03/19/2025
PS: Although the Daily MACD Histogram in the chart is in the positive, the Weekly is still in the negative as of now.
DiscoverGold
2 días hace
GPU Gold Rush: Data Centers Charging Toward a $1 Trillion AI Boom
By: Cheddar Flow | March 19, 2025
Key Takeaways
• $1 Trillion Spend: Nvidia CEO Jensen Huang projects global data center construction spending to hit $1 trillion by 2028, driven by rapid AI adoption.
• Massive GPU Orders: The top four cloud service providers have ordered 3.6 million Nvidia Blackwell GPUs, signaling unprecedented demand for AI compute.
• Industry Transformation: These trends underline a shift in tech infrastructure, with hyperscale cloud providers investing heavily in specialized AI hardware.
The Data Center Spending Surge
Nvidia CEO Jensen Huang recently forecast that global spending on data center construction is set to reach $1 trillion by 2028. This projection reflects an inflection point in computing—where traditional software gives way to machine-learning and AI-powered systems. The rapid adoption of generative AI, which underpins applications ranging from language models to image generators, has accelerated capital investments in cloud infrastructure. As enterprises worldwide integrate AI into their products and services, hyperscalers are responding with aggressive data center expansions. This growth is not only boosting server capacity but also driving innovation in cooling, power efficiency, and facility design to support the heavy compute loads.
The Demand for Blackwell GPUs
Alongside the trillion-dollar data center spending, Nvidia’s latest Blackwell GPUs have seen extraordinary demand. Huang revealed that the top four cloud service providers have collectively placed orders for 3.6 million Blackwell GPUs—a staggering figure that highlights the industry’s appetite for cutting-edge AI hardware. These GPUs, designed to handle complex AI workloads, provide the computing power necessary for training and deploying large-scale machine learning models. While this number only reflects orders from the major cloud players, it excludes additional demand from companies like Meta and numerous AI startups. In essence, the true demand for advanced GPUs is even higher, emphasizing Nvidia’s central role in powering the next generation of AI.
Impact on the Tech and Cloud Landscape
The dual trends of surging data center investments and massive GPU orders are reshaping the broader tech landscape. For cloud service providers such as Amazon, Microsoft, and Google, the need to offer robust AI-as-a-service capabilities is driving significant capital allocation. These companies are in a race to build advanced infrastructure, with AI performance now a key differentiator in attracting enterprise customers. Enhanced compute capabilities translate to more efficient training and faster model inference, positioning these cloud platforms at the forefront of digital transformation.
Furthermore, this boom is stimulating a broader industry shift. While Nvidia’s market dominance remains strong, competitors are scrambling to innovate. Companies like AMD and Intel are accelerating their own AI chip development, and cloud giants are exploring in-house solutions to reduce reliance on external suppliers. Yet, Nvidia’s integrated ecosystem—combining hardware prowess with supportive software like CUDA—continues to offer a compelling value proposition.
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x993231
3 días hace
Wow, As info I have an assload of NVDA, AXON, PLTR, a couple weeks ago I sold enough for a couple years of liquid capital (luckily) at the high, you know why? This guy at the local Irish bar was toughing ownersip, (shoe shine boy thing) I said to my wife, time to take a few years of capital so I can chill, true story, no need for capital letters. I don't like posting that but it is true. Watch for an NVDA takeover of LWLG.
Good luck 80% was long term capital gains. Again I hate to post gains but the RV needs fuel. Taking it out of the garage after the winter waxing in a couple weeks.
X
DiscoverGold
3 días hace
Bull of the Day: NVIDIA (NVDA)
By: Zacks Investment Research | March 18, 2025
I last wrote about NVIDIA (NVDA) as the Bull of the Day on January 29 in the immediate aftermath of the DeepSeek invasion.
I explained why buying near $120 offered excellent risk/reward to accumulate more shares of the primary engine of the AI revolution. That play gave investors and traders a quick 15%+ gain on the NVDA rally back to $140.
I then fleshed out the long-term thesis in this article from Feb 18...
DeepSeek and the 5th Industrial Revolution
But then a bigger correction unfolded for technology stocks as the Nasdaq 100 plummeted 13% in just 3 weeks.
So what did I do? I added more NVDA shares on the dip under $110.
Because the biggest NVIDIA catalyst event of the year starts today with CEO Jensen Huang's keynote address at the GPU Tech Conference (GTC) in San Jose.
While I could recap the broad investment case for owing the "engine of AI," the above article has already done that with a 5-year vision.
So I thought it would be fun to profile a unique new product line that Jensen unveiled at CES in early January. We are certainly due to hear more about it today. Here are excerpts from a recent X thread I wrote @KevinBCook.
Introducing Project DIGITS
At CES, Jensen wowed the crowd with something amazing: a personal AI supercomputer for your desktop powered by Blackwell.
This magic little box, not much bigger than your favorite paperback novel, can build models of up to 200 billion parameters.
That means it's more like a few bars of palladium on your desk. And it's only $3,000. Let's dive in!
If you see a picture of Project DIGITS, it actually looks like a mini DGX box. But it's locked and loaded with the new GB10 Grace Blackwell Superchip. Plus CUDA software and libraries.
And it wields a petaflop of AI computing performance for prototyping, fine-tuning & running large AI models.
“AI will be mainstream in every application for every industry. With Project DIGITS, the Grace Blackwell Superchip comes to millions of developers,” said Jensen Huang, founder and CEO of NVIDIA.
At the big CES reveal, you couldn't even buy it yet. I'm betting the wait list has grown long and today we could find out when they ship.
“Placing an AI supercomputer on the desks of every data scientist, AI researcher and student empowers them to engage and shape the age of AI,” Jensen added.
Tools for the New World of Physical AI
On his roadmap in January, Jensen explained the NVIDIA vision going from Generative-AI to Agentic-AI to Physical-AI.
In my "5th Industrial Revolution" article, I give some examples of Agentic AI where we can use software tools that work, build, and create for us automatically, thereby multiplying our time, energy, and creative potential.
But Physical AI gets even crazier as robotic systems can embody AI tools and software to conduct physical tasks for us. This takes the best of what NVIDIA offers to create training environments for, as an example, humanoid robots.
Once developers simulate a real-world situation, NVIDIA Omniverse and Cosmos can train the robot on billions of iterations to perform complex tasks for us... like folding laundry or even cooking a gourmet meal.
Now here's where it gets exciting for the potential of DIGITS. Each Project DIGITS features 128GB of unified, coherent memory and up to 4TB of NVMe storage. And you just plug it in to a wall outlet.
I have to believe that that DIGITS will give the power to small developers to build their own models for Physical AI. We may learn more about that today.
What I know for sure, is how DIGITS will empower those building Agentic AI applications from home or lab to go beyond most platforms.
From the company press release on Jan 6 from CES:
"To build agentic AI applications, DIGITS users can also harness NVIDIA Blueprints and NVIDIA NIM™ microservices, which are available for research, development and testing via the NVIDIA Developer Program."
A big key to NVIDIA success for the past two decades is evangelizing developers by giving them power tools in the form of GPU hardware and CUDA software to build just about anything they can imagine.
And that support only keeps expanding. With DIGITS, when AI applications are ready to move from experimentation to production environments, the NVIDIA AI Enterprise license provides enterprise-grade security, support & product releases of NVIDIA AI software.
Be sure to catch Jensen's keynote at 10 am Pacific today. You won't be disappointed when the Wizard of AI shows off his latest toys and magic.
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BottomBounce
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