Nvidia CEO Jensen Huang becomes stock kingmaker by name-dropping Dell, Ansys
Nvidia Corp. Chief Executive Officer Jensen Huang’s highly anticipated keynote failed to move the needle for his stock. But it turned out to be good for many of the company’s customers and partners.
Though Nvidia shares fell nearly 2% in postmarket trading after the executive unveiled a new processor design called Blackwell, Huang’s touts of other companies — delivered during a two-hour presentation Monday in San Jose, California — sent their stocks higher.
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Engineering software makers Synopsys Inc., Cadence Design Systems Inc. and Ansys Inc. rose more than 2% after Huang said the companies will use its new Blackwell-based processors to put more artificial intelligence enhancements in their products.
And Dell Technologies Inc. gained as much as 3.2% after Huang called out the maker of servers and personal computers.
Also Read | Nvidia, Alphabet, among other US tech stocks rally; S&P 500 technology index gains 0.5%
“Everybody who is building these chatbots and generative AI, when you’re ready to run it, you’re going to need an AI factory,” said Huang, who nodded to CEO Michael Dell in the audience. “Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell.”
Software makers such as SAP SE and ServiceNow Inc. also rose after Huang said they’re using Nvidia’s platform to develop services.
Also Read | Nvidia’s new B200 ‘Blackwell’ unleashes next-gen AI for humanoid dreams. All you need to know
“The enterprise IT industry is sitting on a gold mine,” he said. “They have so much understanding of the way work is done, they have all these amazing tools that have been created over the years, and they’re sitting on a lot of data.”
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This story has been published from a wire agency feed without modifications to the text.
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Published: 19 Mar 2024, 08:20 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.