Wedbush: Nvidia's (NVDA.US) GTC conference next week may help tech stocks in the US "break free" from their current struggles.

Market IntelWednesday, Mar 12, 2025 9:40 pm ET
1min read

Nvidia (NVDA.US) will host its annual GTC conference next week, and Wedbush believes it could be a "turning point" for the industry as tech stocks face tariff pressure, recession fears, and negative sentiment.

Nvidia's GTC conference will take place from March 17 to March 21.

CEO Jensen Huang is expected to deliver the keynote address at 1:00 p.m. ET on March 18.

The firm's analysts wrote: "Over the past week, we have been in constant communication with investors discussing the various scenarios for the 'Big 7' and the AI revolution, and why we remain bullish and believe that despite the catastrophic panic selling in tech stocks early this year, tech stocks will ultimately set new highs by the second half of 2025. We believe this is year 3 of an 8-10 year development process for the AI revolution."

The analysts acknowledged that the early days of the Trump administration were marked by policy confusion on tariffs, which created an unstable environment and put pressure on investor and corporate confidence.

The analysts said: "We have spoken with numerous CEOs of tech companies, both large and small, and their biggest concern is the uncertainty around the new 'rules of the game' under the Trump administration. The constant flow of news from the Trump White House has unnerved many of the growth investors we have

globally, and they are worried about what may come next."

However, they noted that this was only year 3 of an 8-10 year development process for the AI sector, with about $2 trillion in capital spending to come. The current valuations of companies like Nvidia and Microsoft (MSFT) do not reflect their future growth opportunities, and this could change once Washington implements "stable" policies.

The analysts added: "We believe that next week's Nvidia GTC conference will be a turning point for tech stocks as the market begins to refocus on the AI revolution and the future large-scale tech spending."