Nvidia CEO Jensen Huang wields significant influence over stocks by mentioning Dell and Ansys.

by Jaswinder Kaur / 19-03-2024 / comments

Nvidia's CEO Jensen Huang's recent keynote address may not have spurred immediate gains for Nvidia's stock, with a nearly 2% post-market decline following his unveiling of the new Blackwell processor design. However, his mentions of other companies proved beneficial for them. During his two-hour presentation in San Jose, California, Huang highlighted several companies, resulting in notable increases in their stock prices. Synopsys Inc., Cadence Design Systems Inc., and Ansys Inc., all saw their stocks rise by over 2% after Huang announced that they would utilize Nvidia's new Blackwell-based processors to integrate more artificial intelligence capabilities into their products. Additionally, Dell Technologies Inc. experienced a surge of up to 3.2% after Huang acknowledged the company's prowess in building end-to-end systems for enterprise-scale operations.

Huang emphasized the importance of these partnerships, particularly in advancing technologies like chatbots and generative AI, indicating the necessity for robust AI infrastructure, which Dell is well-positioned to provide. This acknowledgment, coupled with Huang's recognition of Michael Dell's presence, underscored the significance of collaboration in driving innovation and scale in the industry.

Furthermore, Huang highlighted the utilization of Nvidia's platform by software giants such as SAP SE and ServiceNow Inc. to develop services, leading to an uptick in their stock prices as well. He emphasized the immense potential within the enterprise IT sector, emphasizing the abundance of valuable data and tools at their disposal, presenting a lucrative opportunity for companies to leverage Nvidia's technology for transformative solutions.

Overall, while Nvidia's stock experienced a temporary setback, Huang's keynote served as a catalyst for the success of various partner companies, demonstrating the interconnected nature of the tech industry and the pivotal role played by collaborations and innovations in driving growth and market performance.