Nvidia’s new AI chip, Unilever restructuring, and Nike earnings

Key points:

• Nvidia launched Blackwell GPU exceeding expectations with 2.5x better performance than the previous generation and announced new NVLink switches, analysts are positive with a 12-month price target of $932.
  
  
• Unilever is restructuring to save €800mn in costs over the next three years and separating its €7.9bn ice cream business, analysts have a 12-month price target of GBp 4,256.
  
  
• Nike reports earnings on Thursday, analysts expect revenue to be down 0.7% YoY and EPS down 6.1% YoY, analysts have a 12-month price target of $119.

Nvidia launches Blackwell chip to extend edge

Nvidia’s GTC AI conference is in full swing and yesterday the world’s leading AI chip maker announced its new Blackwell GPU which is expected to extend the company’s lead in AI chips. The Blackwell GPU platform comes with 2.5x greater performance than its H100 platform (Hopper chip) which will likely widen Nvidia’s leading position. Nvidia also announced a new NVLink switches supporting the trend of AI networking becoming a new growing business in servers. The conference will continue until Thursday and we expect the news flow to continue to be positive for AI related stocks including Nvidia.

Analysts have a 12-month price target of $932 which around 5% higher than the current price with 90% of analysts covering the stock having a positive view on the stock. Nvidia is expected to report FY25 Q1 (ending 30 April) on 24 May with analysts expecting revenue growth of 234% YoY and EPS of $5.44 up 522% YoY.