Nvidia’s stock fell 3.4% after its GTC event, but some analysts see the potential for a rebound in the broader market. Eric Jackson, founder of EMJ Capital and a Nvidia bull, believes the company’s AI chips are crucial to the success of the “Magnificent Seven” trade.
The group, which includes tech giants like Apple, Microsoft, Amazon, Google, Tesla, and Meta, has been hit hard by fears over the complex’s valuation and peak AI spending. However, Jackson thinks Nvidia’s AI chips will be key to helping the Mag 7 recover.
Nvidia’s GTC event showcased powerful new AI chips, including Blackwell Ultra and Vera Rubin, which could take human productivity to a whole new level. The company also predicted that its data center infrastructure revenue will hit $1 trillion by 2028.
While Nvidia’s stock still fell on Tuesday, some analysts see the event as a “healthy pullback” that can give the market time to catch its breath. Jackson hopes that this is just like a recent correction and that the Mag 7 names will bounce back in the coming weeks.
Source: https://finance.yahoo.com/news/nvidias-gtc-fallout-reminds-magnificent-7-investors-of-an-important-lesson-160305144.html