Chip giant NVIDIA plans to launch a new artificial intelligence product on Monday, as the tech world has been waiting for it. The latest news is like a stone thrown into a calm lake, causing ripples. It is reported that this new product is regarded as a major innovation in the field of intelligence by the industry.
NVIDIA released a trailer via social media on platform X, showing CEO Jen-Hsun Huang mysteriously writing on a card: “To the robots: enjoy your new brains!” It certainly added more mystery to the upcoming product. Later, the camera turned to a humanoid robot, which seemed to “read” the card intently in front of the gift box, suggesting that robot intelligence was about to take a historic leap forward.
Indeed, NVIDIA’s exploration in the field of artificial intelligence has a long history. As recently as August 12, the company unveiled its open-source physics AI application and the robotic visual reasoning model “Cosmos Reason” at the SIGGRAPH conference. According to the company, this model enables robots to “reason like humans,” leveraging existing knowledge and concepts to take action in the real world. This breakthrough development undoubtedly injects new vitality into the intellectualization of robotics.
As NVIDIA’s new product will launch, market attention is increasingly focusing on this chip giant. Particularly against the backdrop of Fed Chair Powell hinting at impending interest rate cuts, traders’ sentiment has begun to relax. However, the market’s next major test is also approaching—and the core driver of this test remains the AI frenzy that has fueled the stock market rally in recent years.
NVIDIA’s upcoming quarterly earnings report has become the focus of the whole market. As a leader in the field of artificial intelligence, NVIDIA’s performance will undoubtedly have a profound impact on the entire market. Traders are looking forward to the report card to stabilize market concerns about AI spending and confirm that the recent stock market rebound is not another technology bubble.
NVIDIA has a nearly 8% weighting in the S & P 500, its chips are nearly ubiquitous, and about 40% of its revenue comes from tech giants such as meta, Microsoft, Alphabet and Amazon. Therefore, NVIDIA’s quarterly earnings and outlook have become the key events in the whole market. The market generally believes that NVIDIA’s performance will have an important impact on the trend of the stock market.
Although interest rate cuts are good for growth stocks such as NVIDIA, concerns about high market valuations remain. The S & P 500’s forward P/E is now above its 10-year average, while NVIDIA’s blended forward P/E is below its average over the past five years, but still at a high level. However, Wall Street analysts are generally optimistic about NVIDIA’s prospects. At least nine analysts covering the company have raised their price targets in the past week.
The market’s focus will undoubtedly be on NVIDIA’s upcoming product launch and its forthcoming earnings report. The question of whether this chip giant can once again lead innovation in the field of artificial intelligence remains to be seen by the market.
