On Monday, NVIDIA Corporation’s (NASDAQ:NVDA) CEO Jensen Huang announced a significant shift in the company’s data center strategy at the 2025 Computex Technology Exhibition. Huang was met with widespread enthusiasm in Taiwan surrounding his visit, a sight often described as “Jensanity.” Bernstein analyst Stacy Rasgon maintained a positive view on the announcements made by Huang, reiterating his Buy rating and $185 price target for NVIDIA stock.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Stacy Rasgon highlighted the company’s NVLink Fusion announcement as particularly beneficial. However, the absence of major players like Intel, AMD, and Broadcom suggests that NVIDIA Corporation might be looking to boost second-tier ASIC players. Rasgon also said that although NVIDIA is letting others use its tech, it might be a move to capture some business from hyperscalers who would develop their own ASICs regardless. He pointed out that initial partners like Marvell and MediaTek are second-tier players seeking to gain market share, and enabling them could benefit NVIDIA.
The analyst also addressed the removal of diffusion rules and considered it a near-term positive, as it eliminates a potential headwind for NVIDIA’s earnings report on May 28. While there are discussion about replacing these rules with individually negotiated bilateral agreements, particularly following announcements in the Middle East last week, the immediate removal alleviates concerns about constraints on NVIDIA’s sales to most of the world. Rasgon also anticipates continued innovation and expansion into new markets beyond its core offerings, which include a push into networking and potentially PCs, referencing the DGX Spark workstation.
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This article is originally published at Insider Monkey.
