We Have a Game Plan for Nvidia and Marvell
Nvidia CEO Jensen Huang announced several new partners.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
* Jensen Huang confirmed Nvidia’s AI position but brought no unexpected surprises.
* Here’s our game plan for Nvidia as well as Marvell shares.
Nvidia and AI
As expected, Nvidia NVDA introduced its new Blackwell GPU platform with 2.5 times the 8-bit floating point power of its Hopper predecessor. This is set to launch later this year, which means it will have a more meaningful impact on Nvidia in 2025.
CEO Jensen Huang announced several new partners, including Ansys ANSS, Cadence Design Systems CDNS, and Synopsys SNPS. Huan also shared Nvidia said Amazon AMZN Web Services, Google (GOOGL) Cloud, Microsoft MSFT Azure, and Oracle ORCL Cloud Infrastructure will be among the first cloud service providers to offer Blackwell-powered instances, as will NVIDIA Cloud Partner program companies Applied Digital APLD, CoreWeave, Crusoe, IBM IBM Cloud, and Lambda.
The takeaway from this is Nvidia is well positioned, no question about it, yet the shares were trading off this morning likely because as impressive as Jensen’s keynote was, there weren’t any meaningful surprises. We’ve seen this before with Apple AAPL and its annual WWDC conference where what’s announced is largely what’s been reported on leading into the event. The market still likes “one more thing”, that unexpected surprise that was made popular by Apple’s Steve Jobs.
From our perspective, we are interested in owning more NVDA shares in the portfolio and the keynote confirmed the accelerating virtuous circle of data creation and consumption I’ve talked about recently with you. It’s that acceleration that will foster an upgrade cycle that will benefit Marvell’s MRVL network and carrier businesses.
I wouldn’t call Jensen’s keynote a “buy the rumor, sell the news” event, a pullback in the shares would allow us to make that move. The next level of support for the shares, the 20-day moving average, is at $832 and if the market doesn’t like the sobering talk it’s going to get from the Fed and Chair Powell, we could see NVDA shares retrace back to that level.
Marvell shares were trading off in sympathy with NVDA shares today as well as being dragged lower by Super Micro Computer SMCI shares, which are down following an announced equity offering. With strong support between the 100 and 200-day moving averages at $60-$62, that would be an area to pick up MRVL shares following a successful test of that support.
