Key Highlights
- Shares of NVDA climbed 0.5% to $185.60 in premarket trading Wednesday, following a 1.2% advance in the prior session
- The company’s GTC developer conference kicks off March 16–19, with expectations for new hardware announcements including potential inference-focused chips
- Thinking Machines Lab, an AI startup, plans to implement at least one gigawatt of Nvidia’s Vera Rubin technology in what Nvidia described as a substantial investment
- Major Wall Street firms including UBS, Truist, and Bank of America maintain Buy recommendations with targets ranging from $245 to $300
- Analyst consensus points to Strong Buy with 38 Buy ratings and a single Hold, averaging a $273.61 target — suggesting approximately 48% potential upside
Shares of Nvidia advanced during Wednesday’s premarket session as worries about supply chain constraints diminished and market focus turned toward the company’s upcoming GTC developer conference scheduled for March 16–19.
NVDA climbed 0.5% to $185.60 before the opening bell, extending gains after a 1.2% rise in Tuesday’s trading. Broader equity indexes also showed modest strength.
The impending GTC conference has captured significant attention from institutional investors. Market participants anticipate revelations about fresh hardware innovations, including a possible chip specifically designed for AI inference applications.
Timothy Arcuri from UBS doesn’t view GTC as an event that will fundamentally reshape the investment thesis, but believes it should bolster investor conviction regarding system expandability and Nvidia’s dominance in networking technology.
Arcuri highlighted that Nvidia has emerged as the top revenue-generating chip-networking company. Management has projected that networking sales by year-end will exceed the total historical revenue of all competing firms in this segment combined.
Co-packaged optics represents another focal point for market watchers — this innovation integrates optical components directly with chips to facilitate rapid data transmission. Nvidia recently allocated $2 billion each to optical suppliers Coherent and Lumentum, complemented by multibillion-dollar supply contracts.
Arcuri maintained his Buy recommendation alongside a $245 valuation target for NVDA.
William Stein from Truist is similarly monitoring for validation that Nvidia will deliver its next-generation Vera Rubin platform at scale in the latter half of 2024. He’s also seeking additional information about the subsequent Feynman chip design.
Stein characterized GTC as a “positive catalyst” and anticipates management will communicate that supply capabilities, manufacturing output, and market demand are properly synchronized. His Buy rating carries a $283 price objective.
Strategic Partnership with Thinking Machines Builds Pre-Conference Excitement
Prior to the conference, Nvidia received a boost from revealing a partnership with AI venture Thinking Machines Lab. The enterprise, directed by former OpenAI leader Mira Murati, intends to install at least one gigawatt of Vera Rubin infrastructure.
Nvidia additionally disclosed it acquired a stake in Thinking Machines, though specific financial details weren’t revealed. CEO Jensen Huang has previously indicated that a one-gigawatt data facility represents approximately $35 billion in equipment expenditure. Rollout is anticipated to commence in early 2025 as part of a multi-year agreement.
Bank of America Focuses on Long-Term Technology Pipeline to 2028
Vivek Arya from Bank of America confirmed his Buy stance with a $300 valuation target. His attention centers on three key elements at GTC: a refreshed technology roadmap extending through the Feynman GPU platform in 2028, a broader portfolio of inference and decode products, and specifics regarding proprietary optical technology in scale-up infrastructure.
Arya observed that analyst estimates for Nvidia’s data center business already approach $750 billion for the 2026–27 period and near $1 trillion for 2027–28.
The Street maintains an overwhelmingly positive stance on NVDA — with 38 Buy ratings against a single Hold recommendation. The consensus price objective stands at $273.61, indicating roughly 48% appreciation potential from present levels. The equity has surged more than 70% during the past twelve months.
AMD shares advanced 0.2% while Broadcom edged up 0.1% in Wednesday’s premarket activity.
