Nvidia (NVDA, Financial) is staying ahead in the AI race, with analysts highlighting key takeaways from CEO Jensen Huang's keynote at the GTC conference.
Shares rose 1% in premarket trading Wednesday as Wall Street praised the company's latest innovations.
KeyBanc's John Vinh pointed to major announcements like the Blackwell Ultra NVL72, the Vera Rubin NVL144, and a 1.6TB co-packaged optical solution expected to ship later this year. He said Nvidia's smooth transition from GB200 to GB300 should speed up shipments in the second half of 2025.
Wedbush analysts noted that for every $1 spent on an Nvidia chip, $8 to $10 flows into the broader tech industry, benefiting hyperscalers, data centers, cybersecurity, and energy infrastructure. They expect $2 trillion in AI capital expenditures over the next three years.
Stifel's Ruben Roy highlighted Dynamo, Nvidia's new inferencing software, which strengthens its role in AI infrastructure. He sees data center spending hitting $1 trillion annually by the end of the decade.
Citi's Atif Malik flagged three key takeaways: Nvidia now forecasts $1 trillion in AI spending by 2028, Blackwell GPUs are selling faster than expected, and the company is accelerating its product roadmap.
Morgan Stanley's Joseph Moore said there were "no big surprises" but emphasized that Nvidia made a strong case for AI scaling. He expects concerns about AI chip competition to fade as Nvidia's margins climb back to the mid-70% range in late 2025.
With AI investment booming, analysts believe Nvidia will remain the dominant player in the space.
