Everything with Nvidia is ‘good news’ in the short term: analyst

from Nvidia (NVDA) shares have soared this year, propelling markets to new heights with their unprecedented growth. Wedbush Senior Vice President of Equity Research Hardware Matt Bryson joins Morning Brief to clarify his outlook for stocks.

Bryson notes that anything related to Nvidia in the near term “is good news.” With funding for AI initiatives consistently increasing, Bryson says, “If everyone is spending on AI, things look really good.” However, he recognizes that the next generation of AI products will be the determining factor in determining the future gateway to AI offerings. Despite that, Nvidia i’s next Blackwell platformIt is expected to continue to drive growth, according to Bryson.

When it comes to the next catalyst for growth, Bryson points to Blackwell. Although the platform is not expected to launch until the end of the year, Bryson remains unfazed, stating: “There is very, very strong demand between now and then, so I don’t see any obstacles…throughout 2024.”

For more expert insights and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith.

Video transcript

Nvidia briefly hit an all-time high this week.

Now, shares are certainly up this year alone.

It rose more than 100 and 60%.

The Street remains very bullish on the chipmaker.

64 analysts have a buy or outperform rating on the stock.

One of those analysts joins us now, we want to bring in Matt Bryson, he’s Web Bush Equity Research Ware, senior vice president.

It’s great to see you again, Matt.

So talk to us about this big increase we’ve seen at NVIDIA.

Clearly, a lot of focus on just the emphasis and the impact that this is having overall on the broader market.

What makes you so confident that this momentum will continue?

And I guess what do you think that opportunity actually looks like?

Yes.

So in the short term, it’s all good news, right?

They, they came out at the end of May, gave us a great number, gave us a great guide.

Uh But, but since then you’ve seen new funding for start-ups in the AI ​​space.

Uh, the funding numbers are big.

So you’re talking about several billion dollars going to places like Xa. Eventually, most of that money is spent on renting data center space, um, or building data center space.

Lots of video chips.

Um, you’ve seen news about government funding.

Uh And this is all in addition to what the cloud service providers are spending.

And so if everyone is spending on AI, things look really good.

Um, at some point, I think we need more AI applications to appear.

The story continues

Um, but having said that, I think everyone has made a bet on Nvidia’s next platform, Blackwell, which means things will continue well into next year.

I mean, when we talk about this chip demand, there’s a good ballpark number that investors should keep in mind about where these data centers that are being built will eventually move to, in terms of the number of chips that are needed to actually give supporting the applications and demand for generative AI that we are seeing.

So that’s a difficult number to get to what we’re actually seeing now.

Companies are betting that the next set of world-changing applications will be built on AI.

So there’s a lot of training on these big language models going on.

Um, and that’s building the infrastructure on which these applications can be built.

Um, I think ultimately the AI ​​opportunity is going to depend on what these applications look like.

So if we get self-driving cars built with AI, it will change the world that needs a ton of investment.

Um, if we get something like the next YouTube or the next Tiktok or the next AI-based Bill Uber again, it will change the world.

We need a lot of investment, but we don’t know what the next set of applications will look like.

Um, and this will define what the market will be like after this investment in training that we are seeing now, man.

When we talk about NVIDIA’s next catalyst, there’s been a lot of talk, a lot of focus on the upcoming shareholder meeting later this month.

Will this give the stock another boost?

And how does this happen?

I don’t know if the shareholders’ meeting changes much?

Um, I think what will be the next kind of significant catalyst, uh, they’ll have a GTC meeting in the fall.

Hmm, this will certainly be interesting.

Uh They have numbers before that.

Uh That’s going to be interesting, but I think that’s really what we see coming out of Blackwell.

Um, so in my opinion, shipping will start at the end of this year and next year, that will define what the next step will be for NVIDIA.

Um, but again, there’s very, very strong demand until then.

So I don’t see any obstacles.

Uh, roughly throughout 2024.

Fuente