Jensen Huang’s AI Magic Show: Will Nvidia Pull a Rabbit Out of the Hat?

Will Nvidia’s GTC conference reignite the AI trade, or is the bubble finally bursting?

Editorial Team (ET)May 8, 2025

Nvidia, the undisputed leader in AI chip technology, is at a crossroads. The company’s stock has experienced extreme volatility in 2025, reflecting both the enthusiasm and skepticism surrounding the AI boom. Investors who have ridden the AI trade to record highs are now questioning whether the momentum can continue or if the market is entering a period of correction.

The company's annual GTC conference in California is set to be a pivotal moment. CEO Jensen Huang, the face of Nvidia’s AI dominance, will take center stage to outline the company's future. With the unveiling of the next-generation Blackwell Ultra GPU and the anticipated Vera Rubin superchip, Nvidia is expected to reaffirm its leadership in AI computing. But will it be enough to convince Wall Street that the AI trade is still alive and well?

A Stock in Turmoil

Nvidia’s stock took a hit ahead of the conference, sliding more than 3% in early trading. The decline comes after a tumultuous year for the AI chip giant. In January, shares soared to a record high of over $149, only to be pummeled when a new AI model from China’s DeepSeek triggered fears of an AI bubble. The result? A staggering $600 billion wiped from Nvidia’s market cap in a single day.

The losses continued through the first quarter, exacerbated by macroeconomic uncertainty and fears of AI saturation. By March, Nvidia’s total market cap losses from its peak had reached $1 trillion. Investors were left wondering whether the AI-driven rally that powered the Nasdaq and S&P 500 in 2023 and 2024 was running out of steam.

A "Wake-Up Moment" for Investors

Wedbush analyst Dan Ives remains bullish on Nvidia, calling the GTC conference a “wake-up moment for tech bulls.” He believes that Huang’s keynote will serve as a turning point, shifting investor focus back to the long-term potential of AI.

Despite the recent turbulence, Nvidia has continued to push the boundaries of AI hardware. The Blackwell AI chip, which entered full-scale production last quarter, is expected to get a major upgrade with the Blackwell Ultra GPU. Meanwhile, the introduction of the Vera Rubin superchip could solidify Nvidia’s dominance in AI data centers.

Huang is also expected to address investor concerns surrounding competition, particularly from DeepSeek. The Chinese AI firm’s breakthrough model reignited fears that Nvidia’s competitive moat could be shrinking. But industry insiders argue that Nvidia’s strength lies not just in its hardware but in its robust software ecosystem, AI training models, and developer support.

The AI Trade: Boom or Bust?

The broader AI market has faced headwinds in 2025. Tech stocks have led a broader market downturn, with the Nasdaq entering correction territory on March 6, followed by the S&P 500 a week later. Inflation concerns, Trump’s tariffs, and shifting investor sentiment have all contributed to the selloff.

Truist analyst Will Stein remains optimistic, reiterating his Buy rating on Nvidia with a $205 price target. He acknowledges that Nvidia’s customers may be over-deploying AI computing power, leading to an inevitable period of digestion. However, he argues that Nvidia’s long-term growth trajectory remains intact.

To counter concerns about an AI slowdown, Nvidia may follow Broadcom’s strategy by highlighting customer commitments for future GPU purchases. If the company can demonstrate that major tech players are locking in multi-year contracts, it could reassure investors that demand for AI computing power isn’t fading anytime soon.

Nvidia's Future: A Defining Conference

With the AI trade at a critical juncture, Nvidia’s GTC conference will serve as a barometer for the industry’s future. Investors will be closely analyzing Huang’s words, looking for signs that Nvidia can maintain its dominance in AI computing.

The company has defied skeptics before, but the stakes have never been higher. With new competition emerging and market sentiment shifting, Nvidia’s ability to deliver a compelling vision for the future could determine whether its stock rebounds or continues its downward slide.

One thing is clear—this conference is more than just a product launch. It’s a defining moment for Nvidia, AI, and the broader tech sector.

Nvidia

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