Nvidia rises after its CEO finishes selling shares in the company

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By TP


Nvidia rises more than 4% on Wall Street after its CEOJensen Huang, beech stopped selling shares of the firmfor the moment, obtaining more than 700 million dollars. The executive launched in mid-March a Negotiation plan to dispose of up to 6 million shares of the chipmaker by the end of the first quarter of 2025. However, Huang has reached that threshold months ahead of schedule after a series of transactions between June 13 and September 12, according to a new regulatory filing reported by 'CNBC'. But in addition, Nvidia has also risen in the heat of the report published by Morgan Stanley which states that the Blackwell chips of the company are registering a «strong demand»In this sense, the entity's strategists highlight that the main clients will drive significant growth potential for the company. Thus, for example, they focus on Oraclewhich recently announced plans to build a «Zetta-scale AI supercluster powered by 131,000 Nvidia Blackwell GPUs, delivering 2.4 ZettaFLOPS of AI performance.» At a recent event, Oracle requested more GPU supplywhich was positive news for the semiconductor and AI systems supply chain in Asia,» Morgan Stanley detailed. Likewise, the American bank emphasizes that they now expect the CoWoS capability (Chip-on-Wafer-on-Substrate) from TSMC increase to 80,000-90,000 wafers per month by 2025, compared with a previous estimate of 70,000. Regarding the Nvidia GPU Hopper lawsuitalso consider that it remains strong, something that «alleviates» concerns about possible inventory risks. «Hopper H200 chips are seeing a Increased demand for smaller cloud service providers and sovereign AI projects. Meanwhile, Blackwell chips are expected to see 450,000 units produced in the fourth quarter of 2024, translating to a potential revenue opportunity exceeding $10 billion for Nvidia,» they say. For all these reasons, Morgan Stanley maintains an optimistic outlook on Nvidia's AI supply chainfavoring it over the memory, PC and cloud segments as the company continues to capitalize on growing demand for AI semiconductors.