With all due respect to the start of the Fed meeting on March 19, it’s really a backseat event to something else.
Nvidia’s (NVDA) annual GTC event begins on March 18, which some on the Street refer to as the “Woodstock of AI.”
I wasn’t alive for the first Woodstock, so I have no clue as to the vibes there on the ground. But I am alive for Nvidia’s Woodstock, and I can tell you it could be another stock price-moving event for the company — and the broader market.
A couple of things you should be on the lookout for while watching the event online, as constructed by BofA analyst Vivek Arya:
“1) Is there/will there be enough (grid) power to support the energy-intensive genAI computing requirements (power consumption of NVDA’s DGX H100 system around 10.2kWatts), or will access to power become bottleneck for large AI clusters? 2) Impact of rising competition from custom chips (AVGO, MRVL, Alchip) and merchant silicon (AMD, Google) that claim to be cheaper (especially for AI inference) and/or lower cost (30-50% lower than comparable NVDA hardware); 3) Longer-term profit model, with industry-high 75%+ gross margin and 65%+ EBIT margins; 4) Visibility into CY25 sales growth and supply chain planning; 5) Planned use of cash pile that could exceed $100 billion /$180 billion exiting CY25E/CY26E, under constraints of high regulatory hurdles; and 6) At what point do China restrictions start to impact growth, any threat from further restrictions?”
The Yahoo Finance Live morning show team will have a good deal of coverage today on GTC, so do tune in. I am excited about one segment in particular: a few fun facts behind Nvidia’s story.
