Jensen Huang's Speech On Tuesday Will Decide If Now Is The Time To 'Buy The Dip' On NVIDIA

NVIDIA's investors are holding their breath, hoping that Jensen Huang's keynote speech at the GTC conference on Tuesday will deliver enough optimism to sustain the stock's recent rebound from its lows.

Investors are most focused on updates regarding the company's Blackwell product line, as well as comments on gross margins, the Chinese market, competitors, and growth prospects. So far this year, NVIDIA's stock has fallen roughly 12%, though it has recently rebounded from its March lows.

Data shows that bargain-hunting investors have started to re-enter the market, as NVIDIA's valuation nears its lowest point in five years. Rhys williams of Wayve Capital Management LLC said: "The fear of nvidia is we are at peak earnings right now and that the second half of the year isn't going to be nearly as good as they outlined. When he goes onstage he may be able to give people some comfort that things are going well and that the wheels aren't falling off."

A Critical Moment for the Stock: Can the GTC Speech Turn the Tide?

At the conference, NVIDIA is expected to reveal details about its Vera Rubin chip system, named after the American astronomer who proposed the concept of dark matter. The system is slated for mass production later this year.

This comes during a period of downturn in U.S. stocks, driven by a correction in large-cap tech stocks that previously pushed the market to record highs.

Uncertainty surrounding Trump-era tariffs and concerns about AI spending by big tech companies have negatively impacted market sentiment. Alec Young, Chief Investment Strategist at Mapsignals, said: "The market is very skeptical on the stock," said Young, and he added that the market doesn't believe this growth will materialize.

Additionally, NVIDIA's primary profit driver is under pressure from technological shifts, as the AI market transitions from training to inference. NVIDIA dominates the training market with over 90% market share but faces competition in inference—how much market share competitors can capture will depend on how inference computing evolves. Bob Beachler, Vice President of Untether AI, said: "They have a hammer, and they're just making bigger hammers, They own the (training) market. And so every new chip they come out with has a lot of training baggage."

Another key area of focus will be quantum computing. In January, Jensen Huang stated that the technology is still decades away from maturity, causing stocks of companies betting on it to plummet and prompting Microsoft and Alphabet's Google to claim that the technology is closer to practical use than thought.

Despite these challenges, there are some positives for NVIDIA. Last quarter's earnings report showed a 78% increase in revenue and a 93% jump in data center revenue, marking the slowest growth in nearly two years but still beating analyst expectations.

For fiscal 2026, analysts expect the company's revenue to grow by 57% and GAAP earnings per share to increase by 52%. Matt Stucky, Chief Equity Portfolio Manager at Northwestern Mutual Wealth Management, believes that if NVIDIA's stock had traded at its current price-to-earnings ratio a few years ago, it might have implied greater downside risk than it does today.

If NVIDIA can meet its performance guidance—delivering strong results with the Blackwell product line, improving gross margins, and maintaining robust market demand—the company has a chance to revitalize its stock price. Wayve Capital's Williams added:

"If they execute as they say they will, this will prove to be a good buying opportunity."