Nvidia’s GPU Technology Conference (GTC) was closely watched by investors, as the stock has seen a recent decline after years of strong performance. CEO Jensen Huang addressed questions from analysts during the event, providing insights on demand for its Blackwell chips and the impact of tariffs. Huang emphasized that demand for AI computation has increased significantly, with the top cloud service providers fully invested in Nvidia’s products.
Analysts noted that Huang’s disclosure of Blackwell demand in data centers was a positive sign, shifting the narrative to focus on the strength of demand. There was also discussion around the growth of physical AI, which involves using artificial intelligence in the real world to power machines’ actions. This is seen as a significant opportunity for Nvidia in the robotics market, potentially worth $50 trillion.
Huang also addressed concerns about tariffs and the possibility of a recession impacting customer spending. He stated that Nvidia is prepared for such scenarios and is starting to manufacture more products onshore to mitigate the effects of higher tariffs. Huang believes that even in a recession, companies would prioritize spending in areas that are growing, which could benefit Nvidia.
Overall, analysts were encouraged by Nvidia’s strategic responses to current challenges and the potential growth opportunities in physical AI and other emerging markets. Despite recent stock fluctuations, there is optimism about Nvidia’s long-term prospects based on the insights shared during the GTC.
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