Everything with Nvidia is ‘all good news’ in near-term: Analyst

Nvidia’s (NVDA) stock has skyrocketed this year, propelling markets to new heights with its unprecedented growth. Wedbush SVP of Equity Research Hardware Matt Bryson joins Morning Brief to shed light on his outlook for the stock.

Bryson notes that anything related to Nvidia in the near term “it’s all good news.” With funding for AI initiatives consistently on the rise, Bryson says, “If everyone is spending on AI, things look really good.” However, he acknowledges that the next generation of AI products will be the defining factor in determining the future gateway for AI offerings. Nonetheless, Nvidia’s upcoming Blackwell platform is expected to continue fueling growth, according to Bryson.

When it comes to the next catalyst for growth, Bryson points to Blackwell. Although the platform is not slated for release until the end of the year, Bryson remains unfazed, stating, “There’s really, really strong demand ’til then, so I don’t see any stumbling points… through the course of 2024.”

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This post was written by Angel Smith.

Video Transcript

Nvidia briefly touching an all time high this week.

Now, the stock has certainly been on a tear this year alone.

It’s up over 100 and 60%.

The street remaining very bullish on the chip maker.

64 analysts have a buy or outperform rating on the stock.

One of those analysts joining us now, we wanna bring in Matt Bryson, he’s Web Bush Equity Research ware, senior vice president.

It’s great to see you again, Matt.

So talk to us just about this massive run up that we’ve seen in NVIDIA.

Clearly, lots of focus just about the emphasis and the impact that it is having clearly overall on the broader market.

What makes you so confident that this momentum is going to continue?

And I guess what do you think that that opportunity really looks like?

Yeah.

So in the near term, it’s all good news, right?

They, they came out um in late May uh gave us great numbers, uh gave a great guide.

Uh But, but since then you’ve seen new funding for start ups um in the A I space.

Uh the the funding numbers are large.

So you’re talking uh numerous billion dollars going to places like Xa I uh eventually most of that money gets spent either renting data center space, um or building data center space.

So lots of video chips.

Um You’ve seen news around government funding.

Uh And that’s all additive to what the cloud service providers are spending.

And so if everyone’s spending on A I just things look really good.

Um At some point, I, I think we need more A IA I applications to show up.

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Um But having said that I, I think everyone’s made a bet through nvidia’s next platform Blackwell, um which means things remain good well into next year.

I mean, when we talk about this chip demand, like is there a good ballpark figure that investors should be going off of in their minds about where these data centers that are being built out will eventually move to, in terms of the number of chips that are necessary to really support the applications and, and the generative A I demand that we’re seeing.

So that’s, that’s a difficult number to come up with what we’re really seeing right now.

Is companies making a bet that uh the next set of applications that change the world are gonna be built on A I.

So there, there’s lots of training uh of these large language models going on.

Um And that’s building out the infrastructure that these applications can get built on.

Um II I think at the end of the day the A I opportunity is going to depend on what those applications look like.

So if we get self driving cars built on A I that changes the world that needs a ton of investment.

Um If we get something like the next youtube or the next tiktok um or the next Bill Uber built on A I again, um that changes the world.

We need a ton of investment, but it’s really what that next set of applications look like that we don’t know.

Um And that’s gonna define what the market looks like past this investment in training that we’re seeing right now, man.

When we talk about the next catalyst for NVIDIA, there’s been lots of talk, lots of focus on the upcoming shareholder meeting later on this month.

Is that going to provide another boost to the stock?

And how come?

I don’t know if the shareholder meeting changes much?

Um II I think that what the next uh kind of significant catalyst is, uh they’ll, they’ll have a fall GTC meeting.

Um That will certainly be interesting.

Uh They have numbers before then.

Uh Those will be interesting, but I, I think it’s really what we see that comes out of Blackwell.

Um So that in my mind begins shipping late this year into next, that’s gonna define what the next step for NVIDIA looks like.

Um But again, there’s just really, really strong demand until then.

So I don’t see any stumbling points.

Uh kind of through the course of 2024.