Photo by Christian Wiediger on Unsplash

In today's Cook's Kitchen we review the logic of why you always buy the dips in the King of AI.

Of course I'm talking about Nvidia (NVDA). As I told investors in late February in my Nvidia Bull of the Day article...

So I won't belabor any further my love for the company and Jensen Huang's ability to surround himself with the best engineering talent in the world.

Instead, I'll just put your attention on the future and the upcoming GPU Tech Conference from March 21-24. This is the semi-annual event where Jensen gets to show off their latest innovations and solutions for customers like Deloitte, Epic Games, Mercedes-Benz, Microsoft, Pfizer, Sony, Visa, Walt Disney, and Zoom.

They have to do this twice a year just to keep up with all the technology envelope-pushing they do. After Jensen's news-filled keynote there will be more than 900 sessions from 1,400 speakers, including some of the world’s top researchers and industry leaders in AI, high performance computing and graphics.

Registration is free and open now. Huang's keynote will be live-streamed on Tuesday, March 22, at 8 a.m. Pacific time and available on demand afterward. Registration is not required to view the keynote. Watching the Wizard of AI present his latest wares is always a treat so don't miss it!

(end of excerpt from Feb 28 article)

Of course, the King of AI did not disappoint this week. The list of innovations would take up several web pages and over a dozen separate press releases...

• Nvidia AI Delivers Major Advances in Speech, Recommender System and Hyperscale Inference
• Nvidia Announces Hopper Architecture, the Next Generation of Accelerated Computing
• Nvidia Announces DGX H100 Systems – World’s Most Advanced Enterprise AI Infrastructure
• Nvidia Introduces Grace CPU Superchip
• Nvidia Opens NVLink for Custom Silicon Integration
• Nvidia Introduces 60+ Updates to CUDA-X Libraries, Opening New Science and Industries to Accelerated Computing
• Nvidia Announces Digital Twin Platform for Scientific Computing
• Nvidia Launches Data-Center-Scale Omniverse Computing System for Industrial Digital Twins
• Nvidia Announces Spectrum High-Performance Data Center Networking Infrastructure Platform
• Nvidia Enters Production With DRIVE Orin, Announces BYD and Lucid Group as New EV Customers, Unveils Next-Gen DRIVE Hyperion AV Platform
• Nvidia Launches AI Computing Platform for Medical Devices and Computational Sensing Systems
• Nvidia Announces Availability of Jetson AGX Orin Developer Kit to Advance Robotics and Edge AI
• Nvidia Announces Omniverse Cloud to Connect Tens of Millions of Designers and Creators
• Kroger and Nvidia to Reinvent the Shopping Experience Through State-of-the-Art, AI-Enabled Applications and Services

If you are interested in any of these developments, go to the Nvidia Newsroom and feast your eyes!

As if NVDA investors needed any more reasons to push the stock up 10% today, the Semi market went into convulsions of glee on this bit of news first reported by Reuters...

Nvidia shares are trading higher Thursday following several reports the company is interested in using Intel (INTC Quick QuoteINTC - Free Report) for chip manufacturing.

"They're interested in us using their foundries. We're very interested in exploring it," Nvidia CEO Jensen Huang said, according to a Reuters report.

Intel CEO Pat Gelsinger confirmed that the company is in discussions with Nvidia. Intel expanded its business to accommodate chips designed by others near the beginning of 2021. The company calls its expanded offering "Intel Foundry Services."

Nvidia shares were also seeing strength after chip manufacturing executives urged Congress to pass legislation that includes subsidies for the semiconductor industry. The legislation would include $52 billion in incentives for chipmakers.

Analysts Play Catch-Up

Shame on me for not buying more NVDA at $220 like I've been talking about for six months -- and we watched it go down there 3 months in a row!

But I had a good chunk already and the market was doing some dicey head-fakes down there so I wanted to wait and see how bad it could get.

And tisk-tisk on you if you didn't own any NVDA at all and not take the stab at $220 as I reiterated again in my March 9 video...

Okay, let's hear from the analysts in the wake of GTC that probably caught a few sleepin' (or at least they weren't publishing new buy calls at $220!)...

5 Nvidia Analysts On AI Inflection, A $1-Trillion Opportunity, Silicon-Software Split And Sky-High Valuation (notes courtesy of Benzinga.com)

Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating and $400 price target for Nvidia shares.

Susquehanna Financial Group analyst Christopher Rolland has a Positive rating and $360 price target.

Credit Suisse analyst John Pitzer has an Outperform rating and $400 price target.

Raymond James analyst Chris Caso maintained a Strong Buy rating and $365 price target.

KeyBanc Capital Markets analyst John Vinh reiterated an Overweight rating and $350 price target.

The most underrated analyst above is Mosesmann from Rosenblatt. He's the only one to speak boldly about the "Massive AI Inflection Ahead: Tuesday's announcements set the stage for a massive AI inflection that targets a $1-trillion total addressable market spread among gaming, AI enterprise and Omniverse, chips/systems and automotive."

Credit Suisse analyst John Pitzer offered a powerful observation in his note "Confidence is High: Nvidia increased its long-term TAM to $1 trillion, with a 50-50 breakup between silicon and software."

Pitzer also made this prediction: "The Hopper GPU architecture, which will succeed Ampere, likely represents the most significant generational improvement in history."

Chris Caso from Raymond James wrote that "...while the stock is among the most highly valued at 40x, that multiple is justified by 50% annual revenue growth for the last two years (35% annually over the last 5), and such significant product cycles and new revenue streams going forward."

Finally, here was JPM...

Nvidia remains "1-2 steps ahead of competitors"

JPMorgan analyst Harlan Sur reiterates an Overweight rating on Nvidia with a $350 price target following Tuesday's investor day. The company provided updates on its accelerated computing products, platforms and solutions across its focus end-markets and announced a next generation Hopper accelerated computing architecture and next-gen H100 chipset that targets datacenter acceleration.

"With leading silicon hardware and software platforms and a strong ecosystem, Nvidia is well positioned to continue to benefit from major secular trends in artificial intelligence, high performance computing, gaming, and autonomous vehicles."

While Sur believes the company remains "1-2 steps ahead of its competitors," I would say that's an understatement.

And that's why you buy the dips in NVDA.

Video Length: 00:08:17