Later today, Nvidia (NASDAQ:NVDA) CEO Jensen Huang will sit down for a fireside chat regarding artificial intelligence and related developments with journalist Lauren Goode, according to a Barron’s report. Immediately following that meeting, Huang will discuss the trajectory of generative AI with Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg. It’s a rare meeting of the greatest minds in technology. In addition, Huang has an opportunity to productively frame NVDA stock.
One of the most significant factors underlying this discussion is the enormous weight that both Nvidia and Meta leverage. Despite some rough performances in the past month, NVDA stock still carries a market capitalization of $2.76 trillion. Similarly, META struggled during the past 30 days. However, it’s also part of the trillion-dollar market cap club – $1.19 trillion at time of writing.
Still, concerns do exist among recent stakeholders of NVDA stock. Last month, Nvidia began trading on a split-adjusted basis. While nothing fundamentally changes with a share split, it helps to improve accessibility for retail investors, especially those who have brokerages that don’t support fractional share ownership. Therefore, the AI discussion may be an opportunity for Huang to convince investors to think long term. Below are other elements to watch.
NVDA Stock May Benefit from Latest AI and Graphics Tech Advancements
Investors should tune in to see what Nvidia has in store regarding recent innovations in AI, along with the graphics processing tech that undergirds machine intelligence. As well, it’s possible that Meta’s Mark Zuckerberg may reveal insights on how the social media firm and big data juggernaut plans to utilize Nvidia’s solutions.
Spotlight on Generative AI Trends
With Bloomberg reporting that generative AI could become a $1.3 trillion ecosystem by 2032, the tech obviously commands significant interest. Moving forward, investors will want to see how NVDA stock can benefit from its practical applications. Additionally, market participants should listen for clues regarding the potential for new revenue streams.
Addressing the Competitive Landscape
While Nvidia and Meta have the benefit of dominating their core business lines, shareholders will also seek reassurances that this lead position in the marketplace will be protected. For NVDA stock, it’s important for Huang to discuss the competitive arena and how it plans to address rivals in the space. A discussion on how to avoid the commoditization of graphics processors may be helpful.
Hype or No Hype?
Recently, a Goldman Sachs report noted that tech firms, utilities and other enterprises will spend more than $1 trillion on AI infrastructure in the years ahead. However, concerns also exist about the productivity gains justifying the expenditure. Anxieties that NVDA stock may be overhyped could be contributing to its latest underperformance. Therefore, the Nvidia head has the opportunity to assuage nerves.
Regulation and Ethics
While no one doubts the profound changes that machine intelligence has sparked, ethical concerns have also jumped to the forefront. This then raises the specter of broader regulations. As one of the gatekeepers of this groundbreaking innovation, Nvidia has an opportunity in the upcoming discussion to frame the AI narrative in a positive light. This framing can also potentially help NVDA stock.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
