Markets
markets
Luke Kawa

UBS unpacks the most controversial slide from Nvidia CEO Jensen Huang’s GTC presentation

Nvidia CEO Jensen Huang didn’t move markets when he delivered his keynote address at the chip designer’s conference on Tuesday. But he did raise eyebrows, particularly with one slide that compared shipments of Nvidia’s old flagship chip (Hopper) to its Blackwell current ramp.

The chart illustrated that Blackwell demand this year from the top four cloud service providers (Microsoft, Alphabet, Amazon, and Oracle) has already far outstripped Hopper’s from last year, which was peak demand for that particular product.

NvidaBlackwellHopper
Source: Nvidia

“So you can kind of see that in fact AI is going through an inflection point,” Huang said in reference to the chart.

The CEO had specified that Hopper’s figures were 2024 shipments, but there was a lack of clarity on precisely what the 2025 Blackwell numbers meant.

UBS analysts led by Timothy Acuri got the lowdown on the matter.

“The slide generating the most controversy was a comparison of unit shipments to just the top 4 US CSPs for both Hopper and Blackwell, implying to us these customers were ~40% of total units last year,” he wrote in a note maintaining a buy rating and $185 price target on the stock. “In speaking to the company, the Blackwell number was meant to essentially represent shipments ‘in process’ — we think roughly equivalent to backlog and roughly looking out through CQ3 of this year.”

Putting this all together, Acuri has higher conviction in his call that the chip designer’s near-term earnings growth will be much more substantial than his peers anticipate.

“So assuming a similar mix and netting off the ~100k units that we think shipped to these customers in the month of January, this would imply total Blackwell units in the ~4.2 million range in the period from FQ1 (April) to FQ3 (Oct) of this year,” he continued. “While inexact math, this is nicely above our ~3.8 million model for Blackwell units over this period making us feel pretty good about our ~$5.30 EPS this year (Street still ~$4.50).”

More Markets

See all Markets
markets

Retail traders are “skipping the dip” this time

Here’s one noteworthy feature of the recent market downturn that has the S&P 500 poised for its worst week since reciprocal tariffs were announced in early April: retail traders seemingly aren’t eager to buy the weakness in single stocks the way they used to be.

JPMorgan strategist Arun Jain has flagged that retail traders instead appear to be “skipping the dip.”

“In contrast to the behavior observed during the post-Liberation Day selloff, retail investors did not seize the opportunity to buy-the-dip on Tuesday, with a few exceptions such as META,” he wrote of the day where the benchmark US stock index fell 1.2%. “In fact, they scaled back their ETF purchases and turned net sellers in single stocks.”

Then on Thursday, when the S&P 500 fell 1.1%, Jain projected that retail traders sold $261 million in single stocks. Through noon ET on Friday, his daily outflow estimate stands at $851 million.

With that intel, it’s little wonder why the carnage this week has been particularly intense in more speculative single stocks that had been favored by the retail community, including IREN, IonQ, Rigetti, Cipher Mining, Bloom Energy, and Oklo.

Prediction Markets Draftkings

DraftKings rebounds after Wall Street hears its prediction market plans

The company plans to launch its own predictions product in the coming months.

markets

Archer Aviation plunges on $650 million share sale following its third-quarter results

Air taxi maker Archer Aviation is deep in the red on Friday morning after reporting its third-quarter results after the bell Thursday. The stock is down more than 12%.

Investors don’t appear to be thrilled about the company’s $650 million direct stock offering, announced alongside its results.

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.