Nvidia Stock ‘Still Underappreciated by Investors’: Gene Munster Sees Growth Opportunities from GTC Berlin

NVIDIA Corporation (NASDAQ:NVDA) is in the spotlight this week as its GTC Berlin conference runs Oct. 20 to Oct. 22. The event didn’t lift Nvidia’s stock price much, but one market expert is excited for what’s to come.

Gene Munster on GTC Berlin

GTC Berlin featured several announced partnerships from Nvidia and a keynote from CEO Jensen Huang that highlights the company’s future growth.

"Jensen opens Berlin keynote with the familiar line: Nvidia is an AI factory company, not just GPUs," Deepwater Asset Management Managing Partner Gene Munster tweeted.

Munster said Nvidia’s AI factory includes software, libraries, and hardware that form a full stack supporting recurring upgrade cycles.

"My take: still underappreciated by investors."

The investor said this is a "long-term positive for revenue growth" for Nvidia.

Munster highlighted Nvidia’s new DSX Pod, which he said is "basically a mini center in a container the size of a bus." The investor said this could speed up the time it takes to spin up a data center from 5 months to one month, making the return on investment more attractive.

Huang mentioned AI agents like Muse from Meta Platforms (NASDAQ:META) and Grok Bot from SpaceX (NASDAQ:SPCX), telling the audience that these agents will push token usage "through the roof."

Munster said agents can consume 10-15x the tokens of a chatbot, which should increase compute demand for the next few years as more consumers start using bots daily.

While Huang was positive on the impact AI agents will have on software companies as a sector, Munster disagrees and said some companies in the sector could struggle.

The investor named Salesforce Inc (NYSE:CRM) and Adobe Inc (NASDAQ:ADBE) as software companies that could struggle as AI agents expand.

What’s Next for Nvidia

Munster said Nvidia did not update guidance or share any new financial metrics during Huang’s keynote, noting this may be since the October quarter ends in a week.

"Last night’s $SPCX December quarter capex guide of $35-$40B is a positive read-through for what we should hear from Nvidia on the earnings call in about a month."

Nvidia is expected to report third-quarter financial results in November. Analysts expect earnings per share of $2.48 and revenue of $109.17 billion, according to data from Benzinga Pro. That’s up from $1.30 and $57.01 billion year-over-year.

The company has beaten analyst estimates for earnings per share in 15 straight quarters and beaten revenue estimates in 16 straight quarters.

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