With all due respect to the start of the March 19th Fed meeting, this is really a secondary event.
Nvidia's (NVDA) annual GTC event begins on March 18th, and some are calling it the “Woodstock of AI.”
I wasn't alive during the first Woodstock, so I have no idea what the atmosphere was like there. But I'm living for his Nvidia Woodstock and can say this could be another stock-driving event for the company, and the broader market.
Here are some things to keep in mind when watching the event online, explained BofA analyst Vivek Arya.
1) Is there enough (grid) power to support the energy-intensive genAI computing requirements (NVDA's DGX H100 system consumes approximately 10.2 kW)? 2) Custom chips that claim to be cheaper (particularly for AI inference) and/or lower cost (30-50% lower than equivalent NVDA hardware) (AVGO, MRVL, Alchip) and the impact of increased competition from merchant silicon (AMD, Google); 3) long-term revenue model with industry-best gross profit margins of over 75% and EBIT margins of over 65%; 4) CY25 revenue growth and Supply chain planning visibility; 5) Planned use of cash pile that could exceed $100 billion/$180; 1 billion exits from 2020 to 2020, subject to high regulatory hurdles; and 6) At what point will Chinese regulations start to impact growth and is there a threat of further regulation?”
Tune in today for more coverage on GTC from the Yahoo Finance Live Morning Show team. I'm particularly excited about his one segment. Those are some interesting facts behind Nvidia's story.
