Nvidia (NVDA) wowed technologists with its advancements in artificial intelligence and accelerated computing on Tuesday. But investors were another story. They mostly sold Nvidia stock on the news.
On Tuesday, Nvidia dropped 3.4% to close at 115.43. But in morning trades on the stock market today, Nvidia stock rose more than 1% to 116.93.
↑ X NOW PLAYING Why Russia And China’s AI Partnership Is A Real Threat To U.S. Dominance During a keynote speech at the company’s GTC conference in San Jose, Calif., Chief Executive Jensen Huang discussed how Nvidia is driving the industry into the next stage of AI with systems that can reason.
Wall Street analysts were generally upbeat about Nvidia’s presentation, saying it reinforced bullish forecasts for data center spending.
“The demand for Nvidia GPUs (graphics processing units) remains extremely robust,” Wedbush Securities analyst Daniel Ives said in a client note. “We believe demand is currently outstripping supply 15:1 with more enterprises waiting their turn in line to receive the most advanced AI chips on the market.”
Nvidia is forecasting data center capex to increase from $500 billion in 2025 to $1 trillion by 2030. Driving that spending increase will be the shift from general-purpose computing to accelerated computing as well as the advent of AI factories.
Huang officially debuted Nvidia’s next-generation AI processor, called Blackwell Ultra. He showed off Blackwell Ultra server racks, full computers and new networking technology along with AI inference software.
Blackwell Ultra-based products are expected to be available from hardware partners in the second half of 2025.
What’s Next From Nvidia?
Huang also outlined Nvidia’s processor roadmap. It will release the successor to Blackwell Ultra, called Rubin, in the second half of 2026. Rubin Ultra will come out in 2027, followed by Feynman in 2028.
“Once a year, like clock ticks,” he said about the company’s product cadence.
Rosenblatt Securities analyst Kevin Cassidy reiterated his buy rating on Nvidia stock with a price target of 220 after the keynote.
“We see this annual cadence as a formidable moat to competition including ASICs (application-specific integrated circuits) and expanding Nvidia’s AI dominance,” Cassidy said in a client note.
Huang discussed how artificial intelligence is evolving from generative AI to agentic AI. Systems are moving from generating educated guesses from user prompts to providing more accurate answers and working on a user’s behalf.
Huang unveiled new inferencing software called Nvidia Dynamo for scaling AI reasoning models. The software promises faster response time while reducing operating costs. “It is essentially the operating system of an AI factory,” Huang said.
Nvidia also introduced new networking switch technology that it claims will be a big energy saver for data centers. The products use silicon photonics technology.
Evercore ISI analyst Mark Lipacis maintained his outperform rating on Nvidia stock with a price target of 190.
“No one is investing at the pace or magnitude Nvidia is in building out a full-stack chip+hardware+networking+software ecosystem for the AI computing era,” Lipacis said in a client note. His contacts at hyperscale cloud service providers tell him that Nvidia has an eight-year lead.
A Firehose Of News From GTC
Santa Clara, Calif.-based Nvidia issued 37 press releases and blog posts on Tuesday, detailing the company’s GTC news for the day. And Nvidia’s many partners posted their own announcements.
Nvidia touted several major partnerships at the show.
For starters, it is collaborating with General Motors (GM) on factory automation and next-generation vehicles, including self-driving cars.
Plus, Nvidia disclosed a partnership with GE HealthCare (GEHC) to develop autonomous imaging machines, focused on X-ray and ultrasound applications.
Nvidia unveiled a team-up with telecom industry leaders to develop AI-native wireless networks for upcoming 6G systems. Partners on that project include T-Mobile (TMUS), Cisco Systems (CSCO), Mitre, Booz Allen Hamilton (BAH) and Cerberus Capital Management.
Nvidia Enters The Quantum Realm
Nvidia also made news on the quantum computing front. It announced that it is building a Boston-based research center to advance the promising technology.
The Nvidia Accelerated Quantum Research Center will integrate leading quantum hardware with AI supercomputers. It will focus on solving quantum computing’s most challenging problems, ranging from tackling qubit noise to the transformation of experimental quantum processors into practical devices.
The research center is expected to being operations later this year.
On Thursday at GTC, Nvidia is hosting discussions on progress and challenges for quantum computing.
Investors mostly shrugged at the GTC news on Tuesday. Year to date through Tuesday’s close, Nvidia stock is down 14%.
“Nvidia’s annual GTC AI conference showed few signs of the skepticism that pervades the tech tape,” TD Cowen analyst Joshua Buchalter said in a client note. The company provided a “strong pushback against the DeepSeek bear theses,” as it showed that AI reasoning will require more than 100 times more compute than traditional large language models, he said.
Buchalter kept his buy rating on Nvidia stock with a price target of 175.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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