Nvidia's AI Dominance: Soaring Demand and Future Prospects

1 Unbelievable Metric That Could Make Nvidia Stock a Screaming Buy | The Motley Fool

Nvidia (NVDA 0.69%) earnings have become quite the event for investors. Given the company's growth over the past two years, observers are curious about what each quarterly result will bring. Nvidia's rise has been a significant driving force behind the growth of the broader stock market, so continued success is key for every investor. The third quarter of fiscal 2025 (ended Oct. 27) didn't disappoint, and I think there's a key figure here that could excite investors all over again. Nvidia's primary product is the graphics processing unit (GPU), which is often deployed in situations where extreme computing capacity is required. Its ability to process multiple calculations in parallel sets it apart from other computational devices and makes it a clear choice for workloads that require massive amounts of computing power, like training an artificial intelligence (AI) model. Demand for its GPUs has skyrocketed ever since the AI arms race kicked off, and Nvidia has benefited more than any other company in the market. This was on full display in Q3, as revenue rose 94% year over year to $35 billion, significantly beating management's own expectations. They only expected $32.5 billion in Q3, which would have been 80% growth. This is an unbelievable metric to focus on, but the future also looks bright. For Q4, management expects $37.5 billion, indicating 70% growth. Although that's starting to trend down, it still is an incredible figure. Management has a consistent history of beating revenue expectations, so the real figure is likely a bit higher than that. I wouldn't be surprised if Nvidia continues to deliver strong guidance beats like that throughout 2025, as it has many tailwinds blowing in its favor. One risk with Nvidia is that a significant chunk of its revenue is concentrated among a few customers. Four customers, unnamed by Nvidia, made up around 40% of Nvidia's total revenue in Q3. If these clients stop spending, it could spell disaster for Nvidia. However, it's not hard to figure out who these companies might be, and they all indicate that spending will only increase throughout 2025. One candidate for these mystery clients is Meta Platforms, which indicated that there would be "significant capital expenditures growth in 2025." This spending mostly pertains to increased computing capacity, benefiting Nvidia. Other likely large clients, like Amazon and Microsoft, have also indicated that AI-related computing expenses will rise in 2025. As of right now, this concentration isn't a problem for Nvidia; it's a boost. Another tailwind for Nvidia in 2025 is the launch of its Blackwell architecture. The performance boost of this new product versus the existing Hopper architecture is incredible. Blackwell provides four times the performance as Hopper, as it only requires 64 Blackwell GPUs to run a benchmark test versus 256 Hopper GPUs. Blackwell production is in full swing and continues to ramp up. Management stated that demand greatly exceeds supply, and revenue is already exceeding expectations. These are two huge tailwinds for Nvidia and present a pretty good case for buying the stock, at least on the growth side. However, the stock is still quite expensive overall, and investors need to familiarize themselves with this risk. Nvidia stock trades for 51 times forward earnings. That's not a cheap figure by any means, and it projects multiple years of strong earnings growth into the stock price. If Nvidia keeps growing at its current pace, the price you pay today isn't that expensive. But if it sees struggles toward the end of 2025, it could become an issue. It all boils down to how far along you think the AI buildout is. If it has run its course, then Nvidia isn't a buy. But it can still make for a viable investment if it's just getting started. There are plenty of indications that we're just scratching the surface of what's possible with AI, which will drive more spending with Nvidia, especially as Blackwell architecture rolls out. While I think Nvidia won't have a repeat of its 2024 performance in 2025, I still think there's enough of a case here for Nvidia to continue to beat the markets moving forward.

Jensen Huang Just Delivered Incredible News for Nvidia Stock Investors | The Motley Fool

Nvidia (NVDA -4.18%) supplies the most advanced graphics processing units (GPUs) for developing artificial intelligence (AI) models. Many of the world's largest technology companies are spending boatloads of money to fill their data centers with those chips as they jostle for leadership in the AI race. As a result, Nvidia's data center revenue generated triple-digit percentage growth in each of the last six quarters. But some Wall Street analysts are questioning how long the AI spending boom can last. During an earnings call with investors for the fiscal 2025 third quarter (ended Oct. 27), Nvidia CEO Jensen Huang aimed to put those concerns to bed. He also offered some insights into the demand picture for its new Blackwell GPUs, and here's why investors should be very excited. Developing AI isn't cheap. A single data center GPU can cost up to $40,000, and the most advanced AI models require tens of thousands of them to deliver the appropriate amount of computing power. Nvidia's H100 and H200 GPUs have been the go-to choice for AI development over the past year. They use the company's Hopper architecture, which was the gold standard in performance and energy efficiency But now, Nvidia's new Blackwell architecture offers a major leap forward on both fronts. A Blackwell-based GB200 NVL72 system, for example, can perform AI inference at 30 times the speed of the equivalent H100 system, while providing similar improvement in energy efficiency. That translates into substantial cost savings for data center operators like Microsoft and Amazon, and the AI developers who rent computing power from them. A single GB200 GPU within the NVL72 system sells for about $83,333, which is double the price of the H100 when it first came out. But considering the 30-fold increase in AI inference performance and comparable improvement in energy efficiency, AI developers are coming out way ahead even if they are paying double for these new chips. Simply put, Blackwell is going to make the most advanced AI models financially accessible to a wider variety of businesses and developers. Nvidia generated $30.8 billion in data center revenue during the fiscal 2025 third quarter, which was a 112% increase from the year-ago period. The company shipped only 13,000 sample Blackwell GPUs to customers, so the new chips weren't a big contributor, but sales are expected to ramp up significantly from here. Microsoft is reportedly the biggest Blackwell customer so far. We don't know the size of its orders, but we do know the company allocated $20 billion to capital expenditures (capex) during its fiscal 2025 first quarter (ended Sept. 30), which followed $55.7 billion in capex spending throughout fiscal 2024. Most of that money went toward AI data center infrastructure and chips. Amazon is another top Nvidia customer. Its AI capex spending is on track to hit $75 billion in calendar 2024, and then there is Meta Platforms, which will spend up to $40 billion this year. Oracle will also provide investors with a capex update in December, but we already know the company plans to build clusters with 131,000 Blackwell GPUs. However, that kind of spending can't continue in perpetuity, and some analysts are already expressing caution. While Goldman Sachs is bullish on AI, the investment bank concedes that a killer AI software app is yet to emerge to justify the substantial investments these tech companies are making. Plus, Goldman says if this AI capex only results in customer service chatbots and code generators, then the tech sector is massively overspending. In the end, investors will eventually demand a return on all of that spending. Despite any concerns, Nvidia investors probably shouldn't feel nervous at this stage. In his third-quarter conference call with investors, Huang described Blackwell demand as "staggering." He originally said the new chips will contribute "several billion dollars" in revenue in the fourth and final quarter of fiscal 2025, but he said the company is likely to exceed that estimate (although he didn't provide a firm dollar figure). When asked about a digestion period following all the AI spending so far, Huang said he doesn't expect any slowing in spending until $1 trillion worth of existing data centers are modernized with new GPUs over the next several years. That means Nvidia's sales could steadily grow until 2030 before data center operators take a pause. And not all analysts are worried about a potential slowdown. Morgan Stanley estimates Microsoft, Amazon, Meta Platforms, and Alphabet will spend a combined $300 billion on AI infrastructure in 2025 alone. The investment bank predicts Nvidia is on track to ship up to 300,000 Blackwell GPUs in the final three months of 2024, followed by as many as 800,000 in the first quarter of 2025. Therefore, investors who already own Nvidia could do well to hold on for the long run. And it's probably not too late for new investors to buy into this incredible story, either.

Should You Buy Nvidia Before Dec. 3?

Nvidia (NVDA -4.18%) stock has roared higher in recent years -- and it's continued with that momentum this year, as it's heading for a gain of more than 185%. There's good reason for this top performance. The company has become the leader in a key product to serve a market that may be worth $1 trillion by the end of the decade. I'm talking about chips for the artificial intelligence (AI) market. But Nvidia hasn't stopped with chips. Instead, the company has built an entire portfolio of AI products and services -- from networking elements to an enterprise software system. Nvidia has become the "go to" company for AI and counts the world's top tech companies as its customers. All of this has led to triple-digit revenue growth for its data center business and high profitability -- with gross margin greater than 70% -- on those sales. This strength along with the growth forecast for the entire AI market make Nvidia a great long-term stock to own. If you haven't yet gotten in on this story, though, you may be wondering about when to make the move. After all, if you buy before an upcoming catalyst, you could benefit from an immediate boost. And that next catalyst might be on Dec. 3. Should you buy Nvidia before then? Let's find out. Nvidia's 80% market share Before looking at what's coming up on that day next week, let's first consider the Nvidia story so far. As mentioned, the company's chips -- graphics processing units (GPUs) -- now dominate the AI market, holding 80% share. The GPU has the ability to process many tasks at once, and Nvidia has pledged to update its GPUs on an annual basis. This commitment to innovation should help the company maintain its leadership position. Nvidia's GPUs are the fastest around, making them the ideal engine for AI projects. And since tech companies are racing to win in the field of AI -- aiming to produce the best AI platforms or to use AI to develop game-changing products -- they need the very best chip to get the job done. In recent times, Oracle co-founder Larry Ellison said he and Tesla leader Elon Musk even "begged" Nvidia for more GPUs. Why would Ellison and Musk have to beg? Because so many players have ordered Nvidia's new Blackwell GPU, demand has surpassed supply. So, even though Nvidia products and services are widely available on every public cloud, it isn't exactly easy for customers to get their hands on the very latest GPU right away. All of this is reason to be optimistic about Nvidia's sales as this AI boom continues. Now you're probably wondering: What's happening on Dec. 3? Nvidia will make a presentation at the UBS Global Technology and AI Conference. The event will feature presentations from various companies in the field, with a focus on how technology is transforming the world today -- and what's to come. The upcoming Blackwell launch It's important to remember that Nvidia just reported earnings last week, offering us third-quarter figures along with a fresh update on business in the current quarter. Investors and the company itself are heavily focused on the upcoming release of the Blackwell architecture and chip. The launch is getting rolling, with Nvidia already sending out some products to big customers -- it delivered 13,000 chip samples in the third quarter -- but the production ramp will happen throughout this current quarter. Since Nvidia's earnings report was so recent, I wouldn't expect any major new announcement at the UBS conference. That said, with the production ramp picking up speed in the coming weeks, at any point the company may offer a new detail that could add to visibility on revenue. So, it's important to keep an eye on any Nvidia presentation during the quarter. Now, let's get back to our question: Should you buy the stock before Dec. 3? If Nvidia gives us new, positive updates or even reiterates that Blackwell demand is soaring, the stock could pop -- offering holders a short-term gain. But, if you plan on holding onto the stock for the long term -- the best way to truly win in investing -- this won't impact your returns by much at all. So, though Nvidia is a great AI stock to buy, you don't have to rush into it before the UBS conference. Whether you buy Nvidia before or after Dec. 3, you could score a major win over the long haul.

Nvidia Stock Is Gaining Today -- Is It Too Late to Invest in the Artificial Intelligence (AI) Leader?

Is Nvidia stock a buy ahead of its third-quarter earnings report tomorrow? Nvidia (NVDA 4.89%) stock is climbing in Tuesday's trading following news about the company's Blackwell processors and bullish coverage from analysts. The company's share price was up 4.6% as of 3:30 p.m. EST. Reports emerged today that recently highlighted overheating issues with Nvidia's next-generation Blackwell processors had actually been identified and resolved months ago. In addition to this promising news, the artificial intelligence (AI) leader's stock received price-target increases from two high-profile financial firms. Nvidia is scheduled to report its third-quarter results after the market closes tomorrow, and its share price is now up roughly 196% across this year's trading. Is Nvidia stock still a buy? Nvidia has been this year's hottest and most influential megacap stock. The company is now launching its next-generation Blackwell graphics processing units (GPUs), and expectations are high heading into the company's Q3 report tomorrow. Today's news suggesting that reported overheating issues for the Blackwell processors had actually already been addressed is a promising indicator, and the bullish momentum was strengthened by positive coverage from two high-profile analyst firms. Citing a strong demand outlook heading into 2025, Truist raised its one-year target on Nvidia stock from $148 per share to $167 per share. Stifel was even more bullish, maintaining a buy rating on the stock and raising its one-year price target from $165 per share to $180 per share. With its last quarterly update, Nvidia guided for sales of roughly $32.5 billion in Q3 -- good for year-over-year growth of roughly 80%. The company also targeted a non-GAAP (adjusted) gross margin of approximately 75%, and performance in the category will be under the microscope as investors look for indications as to whether the company can sustain the strong pricing power that it's enjoyed amid the AI boom. Investors should approach the stock with the understanding that Wall Street's expectations are even higher than Nvidia's own guidance, and it's possible that the company's share price could slip even if the AI leader beats the average-analyst sales and earnings estimates. As a long-term investment, Nvidia stock still holds plenty of promise. The company has a dominant position in the market for advanced GPUs for AI applications, and its industry-leading software platform gives it competitive advantages that complement its hardware performance lead. On the other hand, the stock could be volatile coming out of earnings, and investors may want to adopt a dollar-cost-averaging strategy rather than buying a large amount of stock all at once.

Where Will Nvidia Stock Be in 3 Years? | The Motley Fool

By now, Nvidia's (NVDA -4.18%) business has been booming for so long that it's getting boring. As of the time of writing, shares are down by around 3% despite better-than-expected third-quarter earnings and a buoyant market for artificial intelligence (AI) hardware. But how much longer can the momentum last? Let's dig deeper into what the next three years could have in store. Despite being the largest company in the world with a market cap of $3.6 trillion, Nvidia's business is still growing like a start-up. Third-quarter revenue soared 94% year over year to $35.1 billion, beating analysts' expectations of $33.2 billion. And the momentum was driven by its data center business, where it sells advanced graphics processing units (GPUs) for running and trailing AI algorithms. Nvidia also has tremendous pricing power, with a gross margin of around 75%, which suggests it is keeping the competition at bay. Management plans to maintain growth through new product releases, such as its Blackwell-based AI chips, which are expected to provide significant performance improvements over the previous generation of GPUs. However, while the results were great, investors should note that Nvidia's growth is decelerating. Over the previous three quarters, sales rose 122%, 262%, and 265%, respectively. This slowdown will probably continue as the company faces more difficult comps over the next three years. Analysts remain optimistic about the future of the AI industry, with Bain & Co. expecting it to generate revenues of $990 billion by 2027 -- up from just $185 billion last year. They believe businesses are moving out of the experimental phase to begin scaling AI tech into their operations, and huge demand could strain supply chains and cause shortages. If this plays out, Nvidia's already huge margins could get even higher. That said, analysts made similar predictions during the dot-com bubble in the early 2000s. And while the internet turned out to be a world-changing success, widespread adoption didn't come as quickly as expected. There are growing signs that a similar thing could happen to AI. According to The Economist, the disparity between investor enthusiasm about AI and reality might be untenable. They report that only 5% of U.S. businesses say they use AI in their products and services, and few AI start-ups are turning a profit. Most notably, OpenAI, the creator of ChatGPT, expects to lose around $5 billion this year because of huge outflows for employee salaries and the massive energy costs associated with running large language models (LLMs). In the best-case scenario, Nvidia can continue to make newer, more efficient chips that can perform more computational work with less energy requirements. This could bring down the costs of training and running AI models. But there are still many other variables like competition between LLMs, which could keep the software side of the industry unprofitable, even if operational costs begin to fall. All in all, the AI opportunity looks much more speculative and uncertain than the more optimistic analysts are letting on.

Why Nvidia Stock Rallied (Again) on Tuesday

The catalyst that sent the chipmaker and artificial intelligence (AI) specialist higher was a pair of price target increases by Wall Street analysts ahead of the company's upcoming quarterly report. The bulls are running Truist Securities analyst William Stein maintained a buy rating on Nvidia stock while increasing his price target to $167. For investors keeping score at home, that represents potential gains of 19% compared to Monday's closing price. The analyst believes Nvidia is a buy ahead of its earnings, as he thinks there's still potential upside compared to Wall Street's current expectations. He cites increasing demand in the data center market, which is the repository for the vast majority of AI systems and models. Not to be outdone, Stifel analyst Ruben Roy maintained a buy rating on Nvidia stock while increasing his price target to $180. This represents potential upside of 28% compared to Monday's closing price. The analyst believes Nvidia will "beat and raise," beating Wall Street's consensus estimates for the quarter while also increasing its guidance for the full year. He points out that expectations have been rising ahead of Nvidia's fiscal 2025 third-quarter results, which will be released after the market close on Wednesday. He cites supply chain checks as supporting robust demand for Nvidia's soon-to-be-released Blackwell architecture. A lot to prove Nvidia dialed back expectations when the company issued its last quarterly report, but the results are expected to be robust nonetheless. For its fiscal 2025 third quarter (ended Sept. 29), the company guided for revenue of $32.5 billion, which would represent growth of 79%, with a corresponding uptick in profitability. Investors will also be watching Nvidia's gross margin, which was slightly lower in Q2 after hitting a new record in the first quarter. Another area of interest will be progress regarding the company's upcoming Blackwell AI-centric processor release, which is expected to kick off later this year. Nvidia stock is currently selling for 33 times next year's earnings, but I'd argue that's a small price to pay for a company that's widely considered the gold standard for AI processing.

Nvidia Q3 Earnings Preview: 9% Stock Move Likely Amid High Expectations | Investing.com UK

NVIDIA Corporation (NASDAQ:NVDA) is poised to release its third-quarter earnings, with analysts projecting earnings per share (EPS) of $0.74 on revenue of $33 billion. The technology giant, known for its innovations in graphics processing units and artificial intelligence (AI), continues to capture market attention with robust growth expectations across its key segments. The Data Center segment is anticipated to generate $29 billion, marking a 100% increase from the previous year, while gaming revenue is expected to rise by 7% to $3 billion. Gross margins are forecasted to hover around 75%, reflecting the company's efficiency in managing production costs and maximizing profitability. As Nvidia contends with Microsoft (NASDAQ:MSFT) for the title of the most valuable publicly traded company by market capitalization, investors are keenly watching for any updates from CEO Jensen Huang on the highly anticipated Blackwell AI chips, set to ramp up production in the fourth quarter. Nvidia has established a reputation for exceeding Wall Street expectations in recent quarters, having surpassed analyst EPS estimates in seven of the last eight quarters by an average of 15%. This consistent outperformance has historically driven the company's stock upward, with an average post-earnings rise of more than 9%. Year-to-date, Nvidia's stock has surged by an impressive 189% (at the time of writing). However, past performance also highlights the volatility associated with high expectations; Nvidia's stock dipped by 6% following the second-quarter earnings despite beating expectations, underscoring the high bar set by the market. As the third-quarter results approach, the implied volatility on options suggests a potential stock movement of +/- 9%, emphasizing the market's anticipation and the potential for significant price swings based on the latest financial disclosures. As of November 19, 2024, Nvidia's stock opened at $141.325 and reached a current price of $146.38 at the time of writing. This positions the stock closer to its 52-week high of $149.77, far above its 52-week low of $45.01, reflecting the company's substantial growth trajectory over the past year. Nvidia's market capitalization stands at a staggering $3.56 trillion, supported by strong financial metrics, including a trailing PE ratio of 67.22 and a forward PE ratio of 34.18. Despite a modest dividend yield of 0.03% on a dividend rate of $0.04, the stock's robust price-to-book ratio of 60.46 and a low debt-to-equity ratio of 17.221 highlight the company's solid financial health and investor appeal. Analysts maintain a "Strong Buy" recommendation with a mean target price of $160.67, indicating confidence in further upside potential. Investors are eagerly awaiting Nvidia's guidance for the fourth quarter, with revenue expectations set at $37 billion. The focus will be on CEO Jensen Huang's insights regarding the Blackwell AI chips, particularly in terms of supply and demand dynamics, which could significantly impact future earnings and market positioning. Nvidia's ability to navigate these dynamics will be crucial in maintaining its competitive edge in the rapidly evolving AI landscape. The company's strategic investments and innovations continue to capture investor interest, driving expectations of sustained growth and profitability. ***

Nvidia Q3 Earnings Preview: The Make It or Break It Moment for the Market Is Here | Investing.com UK

Looking for more actionable trade ideas? Subscribe here for up 55% off as part of our Early Bird Black Friday sale! Nvidia (NASDAQ:NVDA)'s highly anticipated third-quarter earnings report, set for release after the market close on Wednesday, is shaping up to be a defining moment for both the company and the broader stock market. The results are expected to highlight the ongoing surge in demand for Nvidia's AI chips, which have become the backbone of the generative AI revolution and accelerated computing advancements. As the dominant player in the AI chip market, Nvidia's earnings have far-reaching implications. Analysts predict revenue will reach $33.1 billion, up 82% year-over-year, with adjusted earnings climbing 85% to $0.75 per share.Source: InvestingPro Profit estimates have been revised upward 32 times in recent weeks, according to an InvestingPro survey, with just five downward revisions, reflecting growing bullishness around Nvidia's earnings potential. Investors will focus closely on the tech giant's outlook for the fourth quarter, the first period to include sales of its next-generation AI processor, Blackwell. CEO Jensen Huang has described demand for Blackwell as "insane," adding to the buzz surrounding Nvidia's potential to exceed expectations. This report will not only gauge the strength of Nvidia's business but also serve as a barometer for the broader AI and semiconductor industries. Past earnings surprises from Nvidia have been market-moving events, and this quarter is unlikely to be an exception. NVDA stock closed at $147.01 on Tuesday, a tad below its all-time high of $149.65 touched on November 12. Shares have soared 196.9% in 2024, making Nvidia one of the top-performing S&P 500 stocks of the year. Source: Investing.com At current levels, Nvidia has a market cap of $3.6 trillion, making the Santa Clara-based AI darling the most valuable company in the world. Market participants expect a sharp swing in NVDA stock following the print, as per the options market, with a possible implied move of 8.4% in either direction. As such, investors should prepare for multiple outcomes: 1. A Blowout Quarter and Strong Guidance: If Nvidia beats expectations and raises guidance, the stock could surge to a new record above $150, boosting sentiment across the tech sector. Investors holding Nvidia and related AI plays, such as AMD (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Oracle (NYSE:ORCL), Meta Platforms (NASDAQ:META), and Palantir (NYSE:PLTR) could benefit. 2. An In-Line Report with Conservative Guidance: While Nvidia has a track record of exceeding expectations, conservative guidance could trigger short-term selling. This scenario might signal caution about overestimating the pace of AI adoption. 3. A Miss or Soft Guidance: Given Nvidia's high valuation, any disappointment could lead to a sharp selloff, impacting not just Nvidia but also other high-growth tech stocks. Investors may consider hedging through options or rotating into defensive sectors of the market. Those with long-term confidence in Nvidia might use any post-earnings dip as a buying opportunity. Given Nvidia's stature and its leading role in the AI hype train, its Q3 results will influence not just semiconductor stocks but also other tech companies tied to AI and cloud computing. Positive updates to Nvidia's corporate outlook for the months ahead could fuel more AI optimism and extend the current market rally. On the other hand, investors may use a less-than-stellar report as an opportunity to take profits. Additionally, Nvidia's performance will likely set the tone for the broader market during a period already fraught with economic, political, and geopolitical uncertainty. Nvidia's Q3 report is more than just an earnings release -- it's a potential tipping point for the AI narrative and broader market sentiment. Investors should monitor Nvidia's guidance closely and have a game plan to navigate the multiple scenarios that could unfold. Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Subscribe now to get up to 55% off all Pro plans and instantly unlock access to several market-beating features, including: Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF (NYSE:XLK). I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.

What You Need To Know Ahead of Nvidia's Earnings Report

UPDATE -- Nov. 19, 2024: This article has been updated to reflect more recent analyst estimates and share price information. Nvidia (NVDA) will report third-quarter results after the bell Wednesday, with the world's most valuable company projected to report revenue growth driven by demand for artificial intelligence (AI) infrastructure. Wall Street analysts expect the chipmaker's revenue to grow 84% year-over-year to $33.29 billion and net income to jump to $17.47 billion or 70 cents per share, up from $9.24 billion or 37 cents per share a year earlier, according to Visible Alpha. Nvidia underwent a 10-for-1 stock split in June.

Nvidia (NVDA) Earnings Preview and Key Insights - Buy, Hold or Sell?

Nvidia (NVDA) shares are now just a tad under their lifetime record of $149, showing the solidity of investor sentiment about the company's AI-fueled prospects. On Tuesday, the stock went up 4.89% and closed at $147.01 per share, which analysts described as bullish notes on the company's AI-focused chips before its report that is due on November 21. The trailing year return of NVDA is 196.92% which is far better than the S&P 500's return of 24.05%. Total returns over the last five years are 2,683.59% proving Nvidia to be in the tech and AI industry.

Nvidia to report third-quarter earnings after the bell

Nvidia CEO Jensen Huang arrives at the launch of the supercomputer Gefion, at the Vilhelm Lauritzen Terminal in Kastrup, Denmark, Oct. 23, 2024. Nvidia reports fiscal third-quarter earnings Wednesday after the market closes. Here's what Wall Street is looking for, per LSEG consensus estimates: How Nvidia sees the current quarter shaping up is even more important than the results. Investors want to see if the chipmaker can continue to grow at a fierce rate, even as the artificial intelligence boom enters its third year. Wall Street expects Nvidia to forecast 82 cents per share on $37.08 billion in sales. Much of that future growth will have to come from Blackwell, its next-generation AI chip for data centers currently shipping to customers Microsoft, Google and Oracle. Analysts will listen carefully to comments from CEO Jensen Huang to hear what he says about the demand for Blackwell. The company could also address reports that some of the systems based on Blackwell chips are experiencing overheating issues. In August, Nvidia said it expected about "several billion" in Blackwell sales during the January quarter. Nvidia stock has nearly tripled since the start of 2024. The company reported a 122% growth in sales in the most recent quarter, but that was a slowdown from the 262% year-over-year growth it reported in the April quarter and the 265% growth in the January quarter.

NVIDIA Corporation (NVDA) reports earnings

The stock market risks of Nvidia's success, according to a strategist The filing includes financial statements for the quarter, showing revenue of $35.1 billion, up 94% from $18.1 billion in the same quarter the previous year. This increase was driven by strong demand for data center compute and networking platforms. Data Center revenue was $30.8 billion, up 112% from the previous year, primarily due to the demand for Hopper computing platforms for AI applications. Gaming revenue increased by 15% to $3.3 billion, driven by sales of GeForce RTX 40 Series GPUs. Professional Visualization revenue rose by 17% to $486 million, due to the ramp-up of RTX GPU workstations. Automotive revenue grew by 72% to $449 million, driven by self-driving platforms. Gross margin was 74.6%, up from 74.0% the previous year, attributed to a higher mix of Data Center revenue. Operating expenses increased by 44% to $4.3 billion, primarily due to higher compensation and benefits expenses. Net income for the quarter was $19.3 billion, up from $9.2 billion in the previous year, with net income per diluted share at $0.78. NVIDIA repurchased 92 million shares of common stock for $11.1 billion during the quarter. The company has been authorized to repurchase up to $46.4 billion of its common stock. The company reported cash, cash equivalents, and marketable securities totaling $38.5 billion as of October 27, 2024. Income tax expense for the quarter was $3.0 billion, with an effective tax rate of 13.5%. NVIDIA continues to face supply constraints for its Hopper and Blackwell systems, with demand expected to exceed supply for several quarters. The company has expanded its Data Center product portfolio to include solutions that do not require a U.S. government license for export to China. NVIDIA is monitoring geopolitical tensions and regulatory changes that could impact its business, including U.S. government export controls and restrictions.

Nvidia Earnings Live Coverage: Revenue Nearly Doubles on AI Demand as Company Projects Continued Growth

Stephen Wisnefski is the Executive Editor of News at Investopedia. He has more than two decades of experience as a journalist and newsroom leader, including 25 years at Dow Jones and The Wall Street Journal. Welcome to our live coverage of Nvidia's (NVDA) highly anticipated quarterly results for the third quarter of its fiscal 2025. The chipmaker at the heart of the AI revolution has blown away market expectations in recent quarters, and investors were looking for more of the same Wednesday. The AI investor favorite once again reported results that handily topped expectations, while projecting continued growth amid robust demand for AI. Nvidia shares, however, were down about 1% in recent after-hours trading as investors may have been looking for even stronger results, with expectations rising in the days ahead of the report. Stay tuned here for the details from the earnings report, the conference call with executives and the market reaction to what is widely regarded as the most important earnings release of the quarter.

Nvidia earnings: 50.3% of Investing.com readers expect investors to buy the news By Investing.com

Investing.com -- In a closely contested poll, investors are expected to 'buy the news' following Nvidia (NASDAQ:NVDA)'s earnings report, as the latest survey from Investing.com reveals a highly divided sentiment. A poll on social media platform X showed that 50.3% of respondents expect investors to buy the news, while 49.7% expect them to sell the news. What Will Investors Do Wednesday Evening Following Nvidia's Q3 Earnings Report? Meanwhile, Lynx Equity said that with the stock close to its all-time high, they "detect investor nervousness given that the valuation is leveraged to Blackwell, a future product cycle that has had trouble getting off the starting block due to well-known heating issues." However, Wedbush is bullish ahead of the release, stating they expect "another 'drop the mic' report" from the company, describing it as the "foundation for the AI revolution." "Jensen & Co. are the only game in town with $1 trillion+ of AI Cap-Ex on the way for the next few years with Nvidia's GPUs the new oil and gold in this world," said the firm. They believe that bulls need to see enterprise demand on AI "carry the torch" to move the market higher into year-end and 2025, adding that it all starts with Nvidia. "We believe another $2 billion beat and $2 billion quarter guide higher is the recipe for success that the Street wants to see from Jensen & Co," stated Wedbush. The firm continues to estimate that for every $1 spent on an Nvidia GPU chip, there is an $8 to $10 multiplier across the tech sector. They said this speaks to their firmly bullish view of tech stocks for 2025.

NVIDIA Announces Financial Results for Third Quarter Fiscal 2025

SANTA CLARA, Calif., Nov. 20, 2024 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 27, 2024, of $35.1 billion, up 17% from the previous quarter and up 94% from a year ago. For the quarter, GAAP earnings per diluted share was $0.78, up 16% from the previous quarter and up 111% from a year ago. Non-GAAP earnings per diluted share was $0.81, up 19% from the previous quarter and up 103% from a year ago. "The age of AI is in full steam, propelling a global shift to NVIDIA computing," said Jensen Huang, founder and CEO of NVIDIA. "Demand for Hopper and anticipation for Blackwell -- in full production -- are incredible as foundation model makers scale pretraining, post-training and inference. "AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure," he said. NVIDIA will pay its next quarterly cash dividend of $0.01 per share on December 27, 2024, to all shareholders of record on December 5, 2024. *All per share amounts presented herein have been retroactively adjusted to reflect the ten-for-one stock split, which was effective June 7, 2024. NVIDIA achieved progress since its previous earnings announcement in these areas: CFO Commentary Commentary on the quarter by Colette Kress, NVIDIA's executive vice president and chief financial officer, is available at https://investor.nvidia.com. Conference Call and Webcast Information NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2025 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA's investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA's conference call to discuss its financial results for its fourth quarter and fiscal 2025. Non-GAAP Measures To supplement NVIDIA's condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains and losses from non-affiliated investments and publicly-held equity securities, net, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies.

Can Nvidia Save the Market One More Time Today? | Investing.com UK

Thank Nvidia (NASDAQ:NVDA) for yesterday's uptick in the stock market. The stock accounted for nearly 70% of the day's gains in the Bloomberg 500, a proxy for the S&P 500. Interestingly, the equal-weight RSP ETF declined today.Today is a significant day, as the market will closely watch the AI giant report its earnings after the close. A few aspects seem unusual as we approach the report: Notably, options volume -- especially call volume -- has been lower than usual over the last two trading sessions. This is unexpected on the eve of an earnings report and is something to watch throughout the day tomorrow. Implied volatility levels appear notably lower heading into tomorrow's earnings results than in the past. It was also unusual that the stock surged nearly 5% today on fairly average volumes and below-normal call volume. This situation marks a departure from previous trends in earnings results, which might indicate a shift in investor enthusiasm. It's uncertain, but it could be that all the speculative positions have already been established. However, it is clear that the notional gamma values at the $150 strike are double what they were during the last report in August at the $130 strike. In August, the gamma at $130 for 8/30 expiration was around $50 million on the day of the results, with an implied volatility (IV) of 152. The accumulation of gamma suggests that $150 may act as a significant level of resistance, mainly as implied volatility (IV) decreases following the results, prompting call holders to sell their shares if prices fail to surpass $150. Nvidia's influence on the market is well-documented, and if it exceeds expectations, causing its stock to rise, the broader market could follow suit. Conversely, if Nvidia fails to surprise the market, it could pose problems for the overall market. Interest appears to be subdued currently, and the likelihood of the stock advancing tomorrow could be challenging without any significant surprises. Given the company's beat by $2 billion, guide higher by another $2 billion, it seems the secret is already out. The final piece will be the VIX 1D. In Nvidia's latest report in August, it surged to 21.4 on the day of the results, and it closed yesterday at 11.6. That 21.4 level is a good barometer of how nervous the market is heading toward results after the close, and the IV crush that is likely to follow in the S&P 500.