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Luke Kawa
3/19/25

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).”

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Alaska Air declines as it warns its profit will be dinged by fuel costs, weather, and air traffic control problems

Seattle-based Alaska Air is trading lower Monday afternoon as the airline warned investors that its third-quarter profits will likely come in on the low end of its prior outlook.

When Alaska Air reported its second-quarter earnings in July, the airline said it expected third quarter earnings to land between $1 and $1.40 per share. As of early Monday, analysts polled by FactSet estimated $1.35.

A host of issues are behind the company's expectations of a dent to earnings. ALK said it's projecting fuel costs to climb to between $2.50 and $2.55 per gallon, up from its previous estimate of $2.45, due to West Coast refinery disruptions. Weather and air traffic control issues “led to increased costs from overtime, premium pay and passenger compensation,” said Alaska.

With Monday afternoon’s move, ALK shares are down about 8% year to date.

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Intel cuts expense forecast, sees best gain in weeks

Intel shares jumped after the partially nationalized US chip giant snipped its forecast for operating expenses this year to $16.8 billion from $17 billion after finalizing the divestiture of 51% of its stake in its Altera programmable chip unit to private equity firm Silver Lake.

Shortly after 12 p.m. ET the stock was up 4%, Intel’s best gain since August 22, when the Trump administration announced the extraordinary step of having the federal government take a 10% ownership stake in the private chip company.

Complex Simplicity

OpenAI doesn’t have the cash to pay Oracle $300 billion — raising it will test the very limits of private markets

The ChatGPT maker plans to burn though $115 billion by 2029. No company in history has ever lit that much money on fire intentionally, let alone tried funding such a splurge through private markets alone.

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Seagate, Western Digital romp as hard drive makers dominate S&P 500 leaderboard

Hard drive makers Seagate Technology Holdings and Western Digital surged Monday, putting them comfortably in the top two spots of this year’s top performers in the S&P 500.

Shortly after 10:30 a.m. ET, they were looking at gains of roughly 145% and 130%, respectively, for the year.

Not much news on the day, though Bank of America analysts have boosted the price target for Seagate to $215 from $170 while upwardly revising their outlook for hard disk drive demand this year, per The Fly.

Positive background music on the US and China’s trade relationship, important to IT hardware makers, is also likely helping, along with a general upswing in the AI data center trade.

Not much news on the day, though Bank of America analysts have boosted the price target for Seagate to $215 from $170 while upwardly revising their outlook for hard disk drive demand this year, per The Fly.

Positive background music on the US and China’s trade relationship, important to IT hardware makers, is also likely helping, along with a general upswing in the AI data center trade.

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