why NVIDIA was declined after GTC????

Nvidia decline after GTC shows growing investor disconnect: Barron's

Mar. 21, 2025 2:37 PM ETNVIDIA Corporation (NVDA) StockDEEPSEEKBy: Chris Ciaccia, SA News Editor42 Comments

BING-JHEN HONG

The decline in Nvidia's (NASDAQ:NVDA) share price after its GTC event this week highlights a growing disconnect by investors from the company's fundamentals, Barron's said on Friday.

Nvidia shares are trading at 26 times projected earnings, an "undemanding" valuation for a company that is expected to grow revenue 57% year-over-year, reporter Tae Kim wrote. Much of the disconnect is due to three reasons, Kim opined, all of which Nvidia has addressed: the rise of application specific integrated circuits; the threat of tariffs; and the worry that demand for artificial intelligence accelerators could slow, especially after the release of DeepSeek's (DEEPSEEK) R1 model earlier this year.

Nvidia Chief Executive Jensen Huang addressed these issues at various times. During his GTC keynote address, Huang told onlookers that many orders for application specific integrated circuits get canceled, and they have to be "better than the best."

He also said that "nearly the entire world got it wrong" after investors freaked out that the R1 release could mean slowing GPU demand. The rise of agentic AI, where AI systems can pursue goals and make decisions on their own, will require “easily 100 times more” computing power than was believed just last year, Huang said.

To emphasize that, Huang said the top four cloud service providers — Amazon Web Services, Azure, Google Cloud Platform and Oracle Cloud — have purchased 3.6M Blackwell GPUs this year, compared to the 1.3M Hopper GPUs purchased last year. Blackwell GPUs only just started shipping in the latter part of 2024.

And lastly, Huang said on Wednesday that tariffs would not be an issue for Nvidia in the "near-term."

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