Nvidia to showcase new Blackwell GPU at GTC event
Nvidia's 2024 GTC (GPU Technology Conference) kicks off on Sunday, March 17, where the chip company (NVDA) will showcase its newest tech including the RTX 50-series "Blackwell" GB203 and new GB205 GPUs. While Nvidia's stock has fallen over several trading days, Webush analysts raised their price target on its stock from $850 to $1,000 per share.
Matt Bryson, Wedbush Securities Senior Vice President for Equity Research on Hardware, joins Yahoo Finance on the bigger semiconductor picture for Nvidia and several of its top competitors, such as Intel (INTC) and Advanced Micro Devices (AMD).
"There's demand for more than just Nvidia. Having said that, I think that Nvidia and bringing the cadence of its products to market faster is certainly doing its best to maintain its share lead," Bryson comments.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
JARED BLIKRE: Shares of NVIDIA pulling back today as investors look ahead to the chip giant's GTC conference next week, where the chip giant is expected to debut new techs. And our next guest just boosted his price target on the stock to $1,000 from $850 in anticipation of the big event.
Joining us now is Matt Bryson, Wedbush Securities senior vice president of equity research for hardware. Thank you for joining us today. Just big picture, what can we expect from this conference? There's a lot of attention on Blackwell and some of the new technology that they're bringing. But what's the overall vibe?
MATT BRYSON: I think the overall vibe is going to be positive. They're always very positive during these GTC events. A lot of what they talk about is very big picture. And it tends to be things that you might not see for some time. But at the same time, Blackwell is a big deal. They've said before that they don't think they're going to be able to meet the demand for the product initially because it's so strong. And so I think a lot of investor focus is going to be on exactly what that chip looks like, when it will debut, what it might be priced at.
SEANA SMITH: So Matt what does this mean then for competitors? We know NVIDIA, by far, the leader within the space. But when you take a look at some of the rivals out there, specifically AMD, how far behind is that going to leave some of the other names within the space?
MATT BRYSON: That's a great question. I think having said that, AMD has gotten I believe four of the large US customers to buy into their solutions. I think there's interest from the cloud data centers in having a second source and having options. And so I think through 2024, AMD is still going to ramp revenues.
You have another event out there paralleling GTC. It's a startup called Cerebras. They're showing off their wafer scale chip. Again, they have a niche, very high end training. And I think they'll still do very well in that niche. And so I think there's demand for more than just NVIDIA. Having said that, I think that NVIDIA and bringing the cadence of its products to market faster is certainly doing its best to maintain its share lead.
JARED BLIKRE: And Matt, I want to talk about another chip manufacturer here that's in the news, and that's Intel. They were slated to get 2 and 1/2 billion from the Pentagon, but it looks like that's coming back. Could you just give us some of the Intel we have? This is based on a Bloomberg report from, I believe, yesterday.
MATT BRYSON: Yeah. So what Bloomberg is saying is there was a defense allocation. It was going to be $3.5 billion. A billion of that was going to come from CHIPS Act funds, 2 and 1/2 was going to come from the Pentagon. And that the Pentagon is stepping away from that funding I haven't been able to validate that I think at the end of the day, Intel is going to be the biggest single winner from US funds or US funding of chip makers.
So do they get the full allocation, do they not? I'm not sure from a does it matter perspective. Intel said in the past that if they don't get what they think is the right level of funds, they may have a somewhat smaller scale out in the US in terms of production facilities. But I don't think it really changes the story where with Intel. It's do they get their foundry process right? And if they get that process right, I think they're right back in contention as being one of the main suppliers of server and PC chips.
