Jensen Huang’s GTC keynote may not have unpacked significant surprises, but his insights and future plans reflect on his forward-thinking approach.
Together, the announcements and innovations that were revealed at the conference, particularly in areas such as health and autonomous vehicles, demonstrate Nvidia’s commitment to leading the sector in AI and technology.
The company has also outlined a road map for the next three years, and there are significant new products planned every year. This is an aspiring target to achieve.
READ ALSO: 10 AI Stocks You Need to Watch: News & Ratings and 10 AI Stocks Making Waves: GTC Highlights & Beyond
During his keynote, Huang announced new chips for deploying AI models. These are expected to ship in 2026. However, some investors were underwhelmed, with the stock dropping more than 3% on Tuesday.
This has been an unexpected turn for the company, considering the GTC conference has been a positive catalyst for the past few years.
Here is what Jefferies analyst Blayne Curtis noted about the conference.
“The rate of innovation on all fronts continues to impress and suggests a growing moat vs. peers … we were hoping for more proof points for TAM expansion and TCO advantages.”
Meanwhile, Benchmark analyst Cody Acree said in a note to clients:
“Investors’ attitude toward the speech appeared to be somewhat lethargic. Overall, we thought the keynote was about as expected, with Jensen once again providing a masterclass overview of AI.”
Some analyst firms are very optimistic about the stock.
“We have long viewed sovereign AI as an underappreciated driver of demand for AI infrastructure, and our sense coming out of this summit is that there is a long runway of AI infrastructure development ahead.”
-UBS
“With leading silicon (GPU/DPU/CPU), hardware/ software platforms, and a strong ecosystem, the company is well-positioned to benefit from major secular trends in AI, high-performance computing, gaming, and autonomous vehicles, in our view. It continues to remain 1-2 steps ahead of its competitors.”
-JP Morgan Analyst
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
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10. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On March 18, Morgan Stanley assumed coverage of the stock with an “Overweight” rating and a $230 price target.
According to the firm, there is a large XSIAM growth opportunity ahead. XSIAM or Extended Security Intelligence and Automation Management is Palo Alto’s AI-driven security operations platform, whose demand has been bolstered particularly through Palo Alto’s IBM QRadar deal.
According to the firm, 63% of organizations quote AI as the driver of increased cloud investments. The analyst told investors that even though these are still early days for AI proliferation in security,” changing technology industry trends driven by AI are boosting cybersecurity demand.
9. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 20, Loop Capital kept a “Buy” rating and a $650 price target on AppLovin (APP). The firm recommended growth investors buy the stock on weakness.
The analyst told investors in a research note that even though it’s expected that momentum stocks experience downside volatility, it’s unlikely that AppLovin’s results will meaningfully exceed consensus through this year as business momentum is still early in its upward inflection.
Recently, AppLovin had been a victim of several short seller reports which claimed that AppLovin has been misrepresenting the benefits of its AI advertising platform. The company’s CEO, Adam Foroughi, has denied these claims, and several analysts such as Benchmark Co remain bullish on the stock.
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