Nvidia CEO Jensen Huang could reboot AI trade with GTC address
Jensen Huang is expected to address the challenges facing the AI trade and propose solutions. The industry is eagerly awaiting his insights and guidance. His speech has the potential to reignite interest and investment in AI technology. Stakeholders are hopeful that his remarks will provide a much-needed boost to the sector. The impact of his address on the future of AI trade remains to be seen.
Nvidia GTC Event Preview
Nvidia shares edged higher in early Tuesday trading as investors looked to the tech giant's highly-anticipated GTC event this week in San Jose to kick-start a rally for the world's leading AI chipmaker. Nvidia (NVDA) shares touched a six-month low late last week, and remain deeply in the red since the start of the year, amid broader selloff in tech stocks and concerns that increasing competition and a pullback on AI investment spending will weigh on demand for its newly-released line of Blackwell processors.
Investors were also spooked by the emergence of China-based DeepSeek's AI chatbot earlier this year, which the startup claims was built, trained, and launched at a fraction of the price of its US rivals using only lower-grade Nvidia 'hopper' line chips. Nvidia CEO Jensen Huang will have a chance to speak to all of those concerns, while likely unveiling the newest iteration of the Blackwell lineup, Blackwell Ultra, during his keynote address to the GTC conference on Tuesday.
Key Points to Be Addressed
The company says he'll address the future of agentic AI, robotics, and accelerated demand, but investors are likely to focus on his remarks tied to Blackwell demand, AI investment spending from Nvidia's biggest clients, and the timing of Rubin, its next-generation processor architecture. Named after the American astronomer Vera Rubin, who is credited with discovering so-called dark matter, the new Rubin systems are expected to be rolled out in 2026.
"AI is pushing the limits of what’s possible — turning yesterday’s dreams into today’s reality," Huang said in Nvidia release last week. "GTC brings together the brightest scientists, engineers, developers, and creators to imagine and build a better future." China, tariffs, and Blackwell demand are expected to be key discussion points as well.
Market Outlook
Nvidia remains fundamentally sound heading into the event, even if the stock's momentum has stalled noticeably over the past six months. The group's fourth-quarter earnings, published in late February, included a 78% year-on-year surge in overall revenues, which topped $39 billion, as well a a stronger-than-expected $11 billion contribution from the recently-launched Blackwell line. Nvidia also said it sees current-quarter revenues rising another 10% sequentially, to around $43 billion, amid what the company described as "rapidly rising demand for AI reasoning models and agents."
Concerns and Challenges
Evidence is starting to mount that some of Nvidia's biggest customers, including Microsoft (MSFT) and Amazon (AMZN), are slowing AI spending plans amid a longer-than-expected gap between building their new infrastructure and generating bottom-line profits. AI spending pullback is a trend that is being observed in the industry, which poses challenges for Nvidia's future growth.
Nvidia shares were marked 0.14% higher in premarket trading to indicate an opening bell price of $119.70 each.