As anticipation builds for Nvidia's upcoming earnings announcement this Wednesday evening, the tech giant finds itself at the center of multiple industry discussions. With significant product launches, shifting market dynamics, and evolving AI trends, the company's strategic moves will be closely scrutinized by investors and industry experts alike. The spotlight will be particularly focused on Nvidia's CEO, Jensen Huang, as he prepares to address these developments at Nvidia's annual developer conference and product show, GTC.
Nvidia's recent activities have sparked considerable interest. Just under two weeks ago, Hewlett Packard Enterprise announced its first shipment of the GB200, marking a significant milestone in their collaboration. Simultaneously, Nvidia's impending launch of Blackwell has garnered attention, with analysts predicting it will be a focal point of Wednesday's announcements. However, the road to this launch has not been without its obstacles. Industry analysts comment on the challenges faced in manufacturing and installing these top-of-the-line products, which are critical to Nvidia's fiscal Q4 revenue guidance of approximately $37.5 billion. Notably, this figure includes several billion dollars anticipated from Blackwell sales.
Another element influencing Nvidia’s current landscape is the emergence of DeepSeek. This development initially caused a stir in the market, leading to a notable fall in Nvidia's stock from $142.62 on January 24 to a low of $116.66 by February 3. Despite this initial market panic, Nvidia shares have since rebounded and are currently trading at about $135 as of Monday. Huang attributed the market reaction to DeepSeek to an incomplete understanding of AI model training processes.
"There's a whole bunch of different learning paradigms that are associated with post-training, and in this paradigm, the technology has evolved tremendously in the last five years and the computing needs [are] intensive," – Jensen Huang
Huang's insights into AI model training highlight the compute-heavy nature of these processes, where models are fed vast quantities of data to identify patterns. The post-training phase is crucial, as it is where problem-solving capabilities are honed. DeepSeek has further amplified demand for H20s—throttled-back variants of Hopper chips—indicating a surge in interest and investment in AI technologies.
With Blackwell's launch on the horizon and fiscal 2026 projections set to be unveiled for the first time, Nvidia's strategic course will be under intense scrutiny. Huang has consistently expressed his confidence in Nvidia as a long-term investment, famously describing it as an "own it, don't trade it" stock. This philosophy underscores his faith in Nvidia's enduring potential and leadership in the tech industry.
The upcoming GTC event will provide a platform for Huang to elaborate on these themes and address any lingering concerns from shareholders and analysts. His comments will likely touch on how Nvidia plans to navigate current challenges while capitalizing on new opportunities presented by advancements in AI and computing.