Photo credit: finance.yahoo.com
Nvidia (NVDA) shares experienced a decline of approximately 3% on Tuesday morning, coinciding with the anticipation surrounding the company’s annual GTC conference in California.
CEO Jensen Huang is slated to open the event with a keynote address that will likely set the tone for the company’s direction. Investors are expected to closely analyze his remarks to determine the potential for continued growth within the AI sector.
As of 10:25:52 AM EDT, the market was still open.
Throughout 2025, Nvidia’s stock has faced significant fluctuations. The year began auspiciously with shares reaching a record closing price above $149 in early January. However, the emergence of a new AI model from the Chinese firm DeepSeek raised alarm over a potential AI market bubble, resulting in a staggering loss of nearly $600 billion in market capitalization for Nvidia within a single trading day. Following the release of its fourth-quarter earnings and growing macroeconomic uncertainty, Nvidia’s market cap had plummeted by $1 trillion from its peak.
Despite the challenges, Nvidia bullish Dan Ives from Wedbush expressed confidence in a note to investors, asserting that the upcoming GTC conference in San Jose could serve as a significant turning point for the technology sector.
During his presentation, Huang is anticipated to unveil the Blackwell Ultra GPU—a next-generation graphics processing unit (GPU) set to replace the current Blackwell AI chip. Moreover, he is expected to introduce Nvidia’s Vera Rubin superchip, which represents an advancement over the current generation of Grace Blackwell superchips.
The wider tech market has recently experienced a downturn, with the Nasdaq (^IXIC) entering correction territory on March 6, followed closely by the S&P 500 (^GSPC). Factors such as the implications of Trump-era tariffs and employment cuts linked to the popularity of DOGE have contributed to inflationary concerns.
Ives noted, “We clearly need stable policies in place, and investors require clarity about the regulatory environment… However, we do not believe this will significantly alter the trajectory of the AI Revolution.” He further stated that the Nvidia GTC Conference could represent a pivotal moment for technology stocks as the market turns its focus back on the AI sector and anticipates substantial technology investments in the coming years.
Ives also mentioned that he anticipates Huang will address ongoing concerns regarding DeepSeek while also exploring the future applications of AI in autonomous systems and robotics, among other crucial topics.
Truist analyst Will Stein maintained a positive outlook on Nvidia leading up to the conference, reaffirming a ‘Buy’ rating with a price target set at $205. In his commentary, Stein acknowledged the bearish sentiment surrounding the AI sector, specifically noting concerns that companies may have over-extended their AI computing capacities, which could lead to a period of contraction. He emphasized the timing of such a downturn as a key uncertain factor.
Story Continues
Stein suggested that Nvidia could mitigate these concerns by taking cues from Broadcom’s approach, emphasizing customer commitments to develop large GPU clusters in the coming years, thereby securing future orders for Nvidia’s AI chips.
He concluded, “Nvidia is undeniably at the forefront of AI innovation. Its competitive advantage stems not just from the technical prowess of its chips, but more importantly from a strong culture of innovation, an established market ecosystem, and substantial investments in software, model training, and support services.”
Source
finance.yahoo.com