NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang experienced a drop in his company's stock after a highly anticipated presentation. However, the stocks of other companies mentioned during the event saw a significant rise.
What Happened: Despite unveiling a new processor design, Blackwell, Nvidia's shares fell by almost 2% in post-market trading. However, Huang's endorsements of other companies during the two-hour presentation in San Jose, California, led to a surge in their stock prices, reported Bloomberg.
Engineering software companies like Synopsys Inc (NASDAQ:SNPS), Cadence Design Systems Inc (NASDAQ:CDNS), and ANSYS Inc (NASDAQ:ANSS) experienced a rise of over 2% after Huang announced that they would be using the new Blackwell-based processors for AI enhancements in their products. Similarly, Dell Technologies Inc (NYSE:DELL) saw a 3.2% increase after Huang praised the company for its enterprise systems.
"Everybody who is building these chatbots and generative AI, when you're ready to run it, you're going to need an AI factory. Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell," said Huang, who nodded to CEO Michael Dell in the audience.
Other companies, such as SAP (NYSE:SAP) and ServiceNow Inc (NYSE:NOW), also witnessed a rise in their stock prices after Huang mentioned their use of Nvidia's platform for service development.
Why It Matters: Huang's keynote, though not immediately impactful on Nvidia's stock, significantly affected the stock market. This event follows a series of notable occurrences in the AI and tech industry, including Huang's assertion of Nvidia's technological dominance in the AI space, and the optimism surrounding Nvidia's GTC 2024 event.
Despite the initial stock drop, Huang's influence on the market is evident, as his speeches are seen as potentially determining the course of the AI rally.
This event also adds to the anticipation surrounding Nvidia's future developments and partnerships, as highlighted by the enthusiasm expressed by Jim Cramer ahead of the GTC 2024 event.
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