"The Artificial Intelligence Woodstock": Will Nvidia live up to expectations?
"The Artificial Intelligence Woodstock": Will Nvidia live up to expectations?
With an 80% surge in its stock price since the beginning of the year and a market value of $2.2 trillion, the AI giant will present its latest developments in the field at the GTC conference, starting Monday in San Jose, California
You probably need to hop into a time machine and go back a few years to recall a time when any company garnered as much interest as Nvidia. The stock of this artificial intelligence company has surged almost 80% on Wall Street since the beginning of the year, propelling its market value to $2.2 trillion and earning it the title of the world's third-largest company. Only Microsoft and Apple sit ahead of it on the esteemed list.
To showcase the latest developments in the AI world, Nvidia has decided to return for the first time since 2019 to a physical conference near its headquarters in San Jose, California. The company has invited senior leaders from the field worldwide to the event. What initially started as a local company gathering has quickly transformed into a global congregation of the top AI leaders. It seems that's the nature of things when you're a company that has added a trillion dollars to its market cap in less than three months.
Despite officially being a technological event, the buzz surrounding the company has managed to spark high expectations on Wall Street. Bank of America, for instance, has dubbed it "AI Woodstock" and raised the stock's target price from $925 to $1,100 ahead of the conference. According to the bank, despite a 270% surge in the stock price over the last 12 months, there's still room for further gains as the stock is currently trading at a lower earnings multiple than when ChatGPT launched in November 2022. But Bank of America isn't the only entity bullish on the stock. Bloomberg's data reveals that Nvidia stock currently boasts 60 "buy" recommendations, 7 "hold" recommendations, and 0 "sell" recommendations.
The conference, scheduled to last four days from March 18 to 21, will kick off on Monday with an opening address by the company's CEO, Jensen Huang. The esteemed CEO, who has become a figure in high demand akin to some heads of state, typically commences the event with presentations of new products and an outline of his vision for the future of technology. However, this time, the pressure on him will be heightened following the company's remarkable returns, making it the best-performing company in the S&P 500 index since the beginning of 2024.
