Nvidia AI Boom Just Beginning As Blackwell Gains Traction And Rubin Ultra Raises The Power Bar, Says Gene Munster: 'Investors Are Still Skeptical'
Deepwater Asset Management managing partner Gene Munster highlighted five key takeaways from NVIDIA Corp.‘s (NASDAQ:NVDA) recent keynote presentation, emphasizing that the artificial intelligence buildout remains in its early stages despite investor skepticism.
What Happened: CEO Jensen Huang dedicated about a third of his two-hour-plus keynote to emphasizing that the AI infrastructure buildout is still in its early stages, Munster said noting that Nvidia shares traded down 2.5% during the presentation compared to Nasdaq’s 0.2% decline. “Investors are still skeptical given NVDA trades at 20x CY26 EPS. I buy it.”
Munster pointed to Huang’s confident stance on demand, as evidenced by the Nvidia CEO’s suggestion that customers need not purchase current-generation Hopper GPUs with Blackwell, which are now available.
The keynote featured expected product announcements including Blackwell Ultra, Rubin, and co-packaged optics technology that enables data centers to deploy more GPUs.
Nvidia has consistently delivered around a 4x increase in AI computing power across generations, from Hopper in 2022 to Blackwell in 2024 and the anticipated Rubin in 2026. Notably, Gene Munster pointed out that “Rubin Ultra will require about 4.5x the power compared to Blackwell,” calling it “Good for” Vertiv Holdings Co (NYSE:VRT).
Why It Matters: During the keynote, Huang announced a partnership with General Motors Co. (NYSE:GM) for autonomous vehicles, declaring “The time for autonomous vehicles has arrived.” The collaboration includes factory planning, robotics, advanced driver-assistance systems, and in-cabin safety features built on Nvidia’s Blackwell architecture.
Munster remained skeptical about GM’s autonomous driving prospects, writing, “I’d be surprised if anything significant comes from GM’s autonomy efforts, given they shut down Cruise back in December.” Catching up to Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google-backed Waymo and Tesla Inc. (NASDAQ:TSLA) is “difficult in what is largely a winner-takes-most market.”
Investor focus now shifts to late April earnings reports from Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc., Meta Platforms Inc. (NASDAQ:META), and Amazon.com Inc. (NASDAQ:AMZN) for further insights into AI market momentum.
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