"One Step Left" Nvidia Prepares to Unveil New AI Chip... Will the Stock Rise Further?

Nvidia, the leading company in artificial intelligence (AI), is set to unveil its next-generation AI chip at the annual developer conference (GTC 2024) next week. Attention is focused on whether this could provide a strong boost to Nvidia's stock price, which has recently shown a correction trend. Ahead of GTC, Bank of America (BoA) raised Nvidia's target stock price to $1,100 per share.

[Image source=Reuters Yonhap News]

원본보기 아이콘

According to Nvidia on the 14th (local time), the event will be held from the 18th to the 21st at the SAP Center in San Jose, California. It is the first in-person event since the pandemic, featuring more than 900 sessions and over 250 exhibitions. This year's GTC is particularly noteworthy as it comes after Nvidia has become a leading company driving the New York Stock Exchange amid the AI boom. More than 300,000 participants are expected to join both online and offline.

On the first day of the event, Jensen Huang, Nvidia's founder and CEO, is scheduled to deliver the keynote speech. It is anticipated that he will introduce the next-generation AI semiconductor, the B100, at this occasion. Major foreign media outlets predict that the B100 semiconductor will be produced using Taiwan's TSMC's cutting-edge 3nm (nanometer; 1nm = one billionth of a meter) technology and will begin full-scale shipment by the end of this year. The price is estimated to exceed that of existing products, which are priced above $20,000 (approximately 26.6 million KRW).

The market is currently focusing on whether Nvidia can present additional cards at this year's GTC to solidify its long-term dominance in AI computing. In particular, the key question is whether it can act as a catalyst for stock price increases amid heightened volatility. Nvidia, the representative AI stock, saw its stock price surge since last year, surpassing a market capitalization of $2 trillion. However, it has recently been in a correction phase, falling on four out of the last five trading days. Some analysts argue that Nvidia's stock price increase has been excessive.

Bloomberg reported, "Comments from CEO Huang at this event could end Nvidia's stock price volatility and help resume the rally," adding, "He may face pressure to demonstrate innovations that solidify the company's market leadership." The media also compared Nvidia's GTC to Apple's developer conference. On this day, Nvidia's stock closed around $879 on the New York Stock Exchange.

BoA, which described this year's GTC as the "AI Woodstock," raised Nvidia's target stock price from $925 to $1,100 the day before. Woodstock refers to the famous American rock festival. BoA evaluated, "At this GTC, Nvidia is expected to emphasize key developments such as the growing influence of generative AI, Omniverse, and digital twins across various industries, and provide product updates like the B100 and N100," suggesting that "this could potentially lead to increased company revenue."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.