Nvidia CEO Becomes Kingmaker By Name-Dropping Dell, Ansys
Nvidia Corp. Chief Executive Officer Jensen Huang’s highly anticipated keynote failed to move the needle for his stock. But it turned out to be good for many of the company’s customers and partners.
(Bloomberg) -- Nvidia Corp. Chief Executive Officer Jensen Huang’s highly anticipated keynote failed to move the needle for his stock. But it turned out to be good for many of the company’s customers and partners.
While Nvidia shares edged lower, falling about 1% in premarket trading, after the executive unveiled a new processor design called Blackwell, Huang’s touts of other companies — delivered during a two-hour presentation Monday in San Jose, California — sent their stocks higher.
Read more: Nvidia Unveils Successor to Its All-Conquering AI Processor (2)
Engineering software makers Synopsys Inc., Cadence Design Systems Inc. and Ansys Inc. rose more than 2% before the opening bell a day after Huang said the companies will use its new Blackwell-based processors to put more artificial intelligence enhancements in their products.
Meanwhile, Dell Technologies Inc. gained as much as 1.6% in premarket trading on Tuesday after Huang called out the maker of servers and personal computers.
“Everybody who is building these chatbots and generative AI, when you’re ready to run it, you’re going to need an AI factory,” said Huang, who nodded to CEO Michael Dell in the audience. “Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell.”
Software maker SAP SE also rose after Huang said they’re using Nvidia’s platform to develop services.
“The enterprise IT industry is sitting on a gold mine,” he said. “They have so much understanding of the way work is done, they have all these amazing tools that have been created over the years, and they’re sitting on a lot of data.”
--With assistance from Subrat Patnaik.
(Updates stock moves throughout.)
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