Nvidia’s stock price has fallen by 23% from its record high in early January, but the company’s CEO says this is not a cause for concern. During his keynote speech at GTC, Jensen Huang dismissed concerns about overinvestment in artificial intelligence infrastructure and said that demand for Nvidia graphics processing units (GPUs) will actually increase.
Huang pointed to recent breakthroughs by DeepSeek, a Chinese start-up, as a reason why investors might be concerned. However, he argued that more efficient model training techniques are bringing costs down, which means companies will need more compute capacity to support the growing adoption of AI.
In fact, Huang said that demand for GPU shipments among the four largest cloud services providers has increased by 170% in just one year. He also announced the Rubin GPU, a new architecture that will feature 3.3 times more computing power than its predecessor and launch in the second half of 2027.
Nvidia is well-positioned to be a leader in the next wave of the AI revolution, which includes physical AI technologies like autonomous cars and robots. The company has been working on self-driving car systems for over a decade and provides hardware and software solutions that are used by many major players in the industry.
Wall Street analysts agree that Nvidia’s stock looks undervalued at its current price, with a median target price of $175 per share representing 52% upside potential. The company’s earnings are expected to increase by 51% in fiscal 2026, giving it a cheap valuation of 39 times earnings.
Source: https://www.fool.com/investing/2025/03/20/nvidia-stock-investors-great-news-ceo-jensen-huang