Nvidia's CES 2025 Keynote: Potential Stock Surge and AI Innovations on the Horizon

Why Nvidia stock could soar after CES 2025 keynote

Nvidia CEO Jensen Huang will deliver the opening keynote at CES 2025 from January 6 to January 10 in Las Vegas. The event gathers major tech players, with Nvidia's GPU technology at the forefront of AI advancements. Nvidia's stock surged 172% in 2024, yet closed at $134.70 on December 20, below its peak of $148.87 in November. Huang's keynote is expected to draw significant attention as CES is dubbed "The Most Powerful Tech Event in the World." The 2024 CES attracted over 138,000 attendees, and Huang's position as a prominent tech leader amplifies the expectation for compelling announcements. Numerous tech giants and startups typically unveil innovative products and futuristic concepts during this event. Investors might anticipate a series of noteworthy product launches from Nvidia to capitalize on the heightened visibility. Historically, Nvidia reserves its most groundbreaking reveals for its GPU Technology Conference (GTC), but CES could offer a unique stage for exciting updates. Given the large audience attracted to Huang's keynote, he is likely to present announcements with considerable impact, potentially boosting investor sentiment. When to buy Nvidia stock: An analysis Following Nvidia's stock performance trend from previous CES events, there is potential for a bullish reaction during the 2025 conference. The company enjoyed a noticeable gain during CES 2024, suggesting a similar pattern could emerge this time around. The period from January 6 to January 13, following Huang's keynote, may present an opportunity for stock price elevation, contingent on market reactions to product launches and announcements. Nvidia is also benefiting from a Santa Claus rally, a market trend where stocks typically rise during the last five trading days of December and the first two days of January. This pattern may further influence Nvidia's stock performance in the upcoming days as investors react to the overall market sentiment and its latest innovations. Despite a slight dip in stock price recently, Nvidia remains positioned as a heavy hitter in the AI sector, a market that is still in its formative stages. The company is set to report its fourth-quarter fiscal results on February 26, 2025, which could also shape the market's view of Nvidia's performance moving forward. Nvidia remains a dominant force in the AI and GPU sectors, making it a compelling option for long-term investors despite recent dips in its stock price. With its strategic leadership under Jensen Huang and its strong track record of innovation, the company is well-positioned to capitalize on the growing demand for AI-driven technologies. The upcoming CES 2025 keynote presents an opportunity to boost investor confidence, especially if new products or partnerships are unveiled. While short-term fluctuations and market trends like the Santa Claus rally may influence the stock, Nvidia's foundational strengths and market relevance suggest sustained growth potential. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Why Nvidia Stock Could Jump During the Period From Jan. 6 to Jan. 13, 2025 | The Motley Fool

Nvidia (NVDA 3.69%) CEO Jensen Huang has the honor of giving the opening keynote speech at the 2025 Consumer Electronics Show (CES), which is scheduled to run from Monday, Jan. 6 through Friday, Jan. 10 in Las Vegas. Huang's keynote is slated for Monday, Jan. 6 at 9:30 p.m. ET and will probably be about an hour. It's fitting that Huang is kicking off the 2025 CES. This annual happening is billed as "The Most Powerful Tech Event in the World," and Huang leads what is arguably the most powerful tech company in the world. Nvidia's graphics processing units (GPUs) and related technology dominate the fast-growing artificial intelligence (AI) chip and tech space. Moreover, Nvidia is the second most valuable company in the world by market cap, slightly trailing Apple, and its stock has soared 172% this year through Friday, Dec. 20. At the annual CES, many big tech companies and start-ups launch a wide variety of innovative technology products and unveil futuristic concepts that they aim to someday commercialize. The CES is a trade-only event, but the Consumer Technology Association (CTA), which owns the CES, live streams a portion of the conference, and the streams are free to the public. What can Nvidia investors expect from CES 2025? Nvidia and its many partners always launch or announce inventive and sometimes groundbreaking new products and concepts at the CES. However, Nvidia often saves some of its most exciting product launches and announcements for its annual GTC (GPU Technology Conference) events. I think there's a good chance that Nvidia will share even more exciting news than usual at the 2025 CES. Huang's kicking off this year's tech extravaganza means that he will have the attention of a huge audience, both live and streamers. The 2024 CES drew over 138,000 attendees -- 40% of them from outside the U.S. -- and featured more than 4,300 exhibitors, according to the CTA. So it seems likely that Huang will particularly want to "wow" viewers. While Nvidia stock has performed tremendously this year -- it's up 172% so far in 2024 -- its entire gain was achieved in the first half of the year. On Friday, Dec. 20, Nvidia stock closed at $134.70. That's down from its all-time closing high of $148.87, notched on Nov. 7, and very close to its closing price on June 18 of $135.56. Nvidia stock got a nice boost from the 2024 CES -- specifically, from the start of the event to the first trading day after the event ended. And if a similar dynamic occurs again in 2025, Nvidia stock will rise during the period from Jan. 6, when Huang opens the event, through Jan. 13, the first trading day after the CES ends. Of course, there are no guarantees. The below chart shows how Nvidia stock and the S&P 500 and Nasdaq Composite indexes performed on the first trading day of the 2024 CES. The Nasdaq is probably the better index for context since it's heavily composed of tech stocks. Jan. 8, 2024 was the first full day of CES 2024 and included a team from Nvidia giving a half-hour "special address" at 11 a.m. ET. The team introduced Nvidia's latest generative AI innovations for gaming, content creation, laptops, and robotics, including new gaming GPUs and generative AI models. They also announced that several electric-vehicle (EV) makers selected the Nvidia DRIVE platform for automated driving. The below chart shows Nvidia stock's performance from the start of CES 2024 through the first trading day after the event ended. There is also another upcoming possible positive stimulus for Nvidia stock -- a so-called Santa Claus rally. This term generally refers to the tendency of the stock market to rise slightly during the last five trading days in December and the first two trading days in the following January. For this season, those dates would be Tuesday, Dec. 24 through Friday, Jan. 3, excluding Wednesday, Dec. 25 and Wednesday, Jan. 1 as the U.S. stock market is closed on Christmas and New Year's Day. Naturally, it would be great for investors if Nvidia stock breaks out of its recent trading range soon, thanks to a Santa Claus rally and/or investor enthusiasm about the news from the CES. But it's no matter if this doesn't happen. Nvidia stock is poised to continue to be a long-term winner, as the company is, arguably, the most important company in the AI space -- and the adoption of AI is still in its early innings. If Nvidia stock doesn't break out in January, there's always February. The company is scheduled to release its results for the fourth quarter of fiscal 2025 after the market close on Wednesday, Feb. 26.

Should You Buy Nvidia Before Jan. 6, 2025? | The Motley Fool

Nvidia (NVDA 3.08%) has delivered investors a year full of records, milestones, and successes. The top artificial intelligence (AI) chip designer has reported its highest revenue ever quarter after quarter and was invited to join the prestigious Dow Jones Industrial Average. In addition, Nvidia says demand for its new Blackwell architecture is soaring. On top of this, the tech giant's stock has climbed about 160% this year, making it the best performer in the Dow. As the AI boom continues, Nvidia looks like the perfect stock to buy in order to benefit. The company holds 80% of the AI chip market and has built an entire portfolio of related products and services. Today's $200 billion AI market is forecast to reach beyond $1 trillion by the end of the decade, and Nvidia's well-positioned to benefit. But when exactly should you buy Nvidia stock? It's true the stock could react to any comments from the company about its innovations, general demand for its products, or the progress of the Blackwell launch. And that makes me think of a particular event that's coming up on Jan. 6, 2025. Should you buy Nvidia shares before that date? First, here's a quick summary of Nvidia's path so far. This tech powerhouse's graphics processing units (GPUs) mainly powered video games in their earlier days, but their ability to handle multiple tasks at once made them ideal for other areas, too -- particularly AI. And because they're the fastest around, they quickly became a favorite of AI customers. This has resulted in triple-digit revenue growth in most of the recent quarters, with revenue reaching a record of more than $35 billion in the latest period, and this is with gross margin of more than 70%. This means Nvidia is highly profitable on sales. Nvidia's return on invested capital (ROIC) over the past few years shows the company has made wise investments. Time to consider what's coming up on Jan. 6, and that's CES 2025, otherwise known as the Consumer Electronics Show in Las Vegas where Nvidia Chief Executive Officer Jensen Huang will give the keynote speech. Then, from Jan. 7 through Jan. 10, Nvidia will meet with journalists and analysts and be present on the show floor, where attendees can see how the company is powering products of today and tomorrow. In the past, Nvidia has offered an early look at its technology at CES (for example, the Nvidia Shield streaming media device and the Nvidia Drive platform for autonomous vehicles). The chip giant hasn't offered any hints of what it may present this time around, but a report from Wccftech, citing Nvidia partner Inno3D, suggests Nvidia may showcase AI innovations like "neural rendering" in the consumer-gaming GPU market. Though Nvidia generates most of its revenue from its data center business these days, it's important to remember that its video games business saw revenue climb 15% in the most recent quarter to $3.3 billion. So this still represents a solid growth market for the company. It's also possible that analysts or journalists will ask Huang about the Blackwell launch during CES. I wouldn't expect any major news since Nvidia gave a full update during its earnings report on Nov. 20, but even a brief comment on demand or product rollout could impact the stock's performance. Blackwell is a customizable platform, with more than seven different chips, various networking options, and more -- and demand so far has been "insane," according to comments Huang recently made during a CNBC interview. Now let's get back to the question: Should you buy Nvidia before Jan. 6? It's possible the stock will rise during or after CES on optimism about the company's innovations, so if you've been planning on buying Nvidia, you might want to get in on the stock ahead of the event. However, if you're a long-term investor, short-term price movements won't impact your returns over, say, five or 10 years. This means you don't have to rush to get in on Nvidia before CES. If you buy the stock before or after the show, you're still likely to win over the long run, thanks to Nvidia's market leadership and innovation and the AI market's solid growth potential.

When to buy Nvidia stock: An analysis

Nvidia is set to experience significant growth as it ramps up the rollout of its new GPU, Blackwell. Analysts predict that Q4 and Q1 shipments will soar, with estimates increasing from 150,000-200,000 units in Q4 to 750,000-800,000 in Q1. This surge could lead Nvidia to an impressive $200 billion in data center revenue by 2025. Multiple factors contribute to this anticipated growth. Blackwell is already showing potential for superior performance compared to its predecessor Hopper, and Nvidia is benefiting from a favorable market environment characterized by rising demand for AI infrastructure and GPU capabilities. Analysts have noted that pricing power with Blackwell and increased output will further support Nvidia's upward trajectory. Additionally, the end of its fiscal year early next year allows the market to begin eyeing 2026 forecasts, which could be understated due to Blackwell's emergence. Despite some recent volatility -- shares have dropped 8.5% in the past month -- Nvidia continues to hold a strong position. According to Yahoo Finance's Opening Bid podcast, Bank of America analyst Vivek Arya attributed the recent selloff to both internal execution issues and broader market factors, including concerns about exposure to China. Arya assured, however, that these challenges are temporary and part of the transition into a new product generation. According to Arya, Nvidia's struggles in smoothly transitioning to Blackwell, despite its recognition as a cutting-edge product, still leave uncertainty around customer access and execution. These issues have raised questions around the rollout, but optimism remains high. Arya noted that "94% of sell-side analysts rate Nvidia's stock at a Buy or Strong Buy," demonstrating strong overall confidence in the company. Nvidia's performance in 2024 appears pivotal for its future. As it makes strides to finalize Blackwell's introduction, analysts expect that improving gross margin issues will coincide with increased shipping volumes in upcoming quarters. Projections support that Nvidia could experience robust sales in 2025 once Blackwell is fully operational. With positive momentum expected at significant upcoming events, like Nvidia CEO Jensen Huang's keynote at CES 2025, attention is firmly placed on how the company will navigate the next few months. The startups Nvidia thinks are the future of AI Despite the challenges faced, Nvidia is preparing to take full advantage of the anticipated market dynamics. The firm's ongoing investments in AI capital expenditures are positioned well amid increasing demand for advanced GPU clusters. This is in contrast to market competitors such as AMD and Broadcom, which are ramping their offerings but may not yet capture the divergent demand driven by AI. Nvidia's stock is currently trading at a multiple of 30x, reflective of its 2026 estimated earnings of $4.43. This valuation is among the lowest since shares traded at $95 in May 2024. It raises questions about whether the market has properly accounted for Blackwell's potential impact. Analysts already predict that Blackwell will effectively dwarf Hopper's previous contributions, confirming Nvidia's industry leadership. While Nvidia's potential is evident, it also faces potential market volatility, especially as it integrates Blackwell into its product lineup. Historical trends indicate that when the semiconductor sector diverges from broader market performance, it often precedes volatility. This is particularly significant now, as the semiconductor sector has displayed one of the largest periods of divergence since 2000. Nvidia remains an essential part of the semiconductor landscape, but synchronization with overall market trends will be crucial. In focusing on these dual trajectories -- growing demand for AI-enabled solutions and navigating market pressures -- Nvidia is bolstering its presence in the tech sphere. While growing pains accompany any transition, Nvidia's trajectory indicates a substantial opportunity ahead. As it prepares for what could be a transformative 2025, the investment community remains attentive to its execution. Current signals around Blackwell's shipment and revenue projections have sparked renewed optimism. If you're considering buying Nvidia stock, timing your entry may depend on your confidence in the company's ability to address near-term challenges and capitalize on the upcoming growth surge. With Blackwell might to redefine Nvidia's dominance in the GPU market and expectations for massive revenue growth in the data center segment, the next 12 months could mark a key period. While current valuations reflect some caution due to recent execution hiccups, analysts' strong buy ratings and the company's long-term positioning in AI infrastructure may offer compelling reasons to invest before Blackwell's full impact is realized. How Nvidia will navigate through these shifting dynamics remains a key point of interest. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Nvidia CES 2025 Keynote: How To Watch Jensen Huang Unveil The RTX 5000 Series GPUs - NVIDIA (NASDAQ:NVDA)

Nvidia Corporation's NVDA CES 2025 keynote is set to be one of the biggest tech events of the year. What Happened: The tech world is eagerly waiting for the commencement of CES 2025 and all eyes are on Nvidia CEO Jensen Huang's keynote. When And Where To Watch Huang will deliver Nvidia's keynote on Jan. 6, 2025, at 9:30 pm ET. The event will be live-streamed on YouTube and Nvidia's official website. See Also: Elon Musk A Legendary Entrepreneur But Also A Bully, Says OpenAI CEO Sam Altman: 'Now It's Me, It's Been Bezos, Gates, Zuckerberg, Lots Of Other People' What To Expect RTX 5000 Series GPU: Nvidia is expected to unveil its next-generation RTX 5000 series GPUs. These GPUs could redefine gaming and creative workflows with even greater performance and efficiency. AI and Robotics Innovations: Huang will likely showcase Nvidia's advancements in AI and robotics. From AI-powered tools to next-gen robots, the keynote could highlight how Nvidia's chips are driving these fields. Automotive Technology Updates: Nvidia's impact on autonomous vehicles will also reportedly take center stage. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: With a market cap exceeding $3.433 trillion, Nvidia currently is the second most valuable company in the world after Apple Inc. Nvidia is at the heart of the AI revolution, powering companies like ChatGPT-parent OpenAI, Alphabet Inc., and Meta Platforms, Inc. with its advanced chips. Year-to-date, Nvidia shares have increased by 191.09%, significantly outperforming NASDAQ 100 which is at 31.76%, according to data from Benzinga Pro. Price Action: Nvidia's stock gained 0.39% on Tuesday, closing at $140.22. So far this year, the stock has climbed 37.09%. The latest analyst reports from DA Davidson, Phillip Securities, and Truist Securities set an average price target of $154.67, suggesting a potential upside of 10.65%. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Samsung One UI 6.1.1 Update Is Turning This Galaxy Series Phones Into Paperweights: Bricking, Random Reboots And Overheating Reported Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Is Nvidia Stock a Buy? | The Motley Fool

Nvidia's (NVDA 3.08%) stock has been a huge winner each of the past two years. After surging over 238% in 2023, the stock has soared approximately 164% this year, as of this writing. Those are two huge back-to-back year gains that have propelled the company to become one of the largest in the world. The question is, can the stock hit the market with a three-peat of outsized gains in 2025? Interestingly, the stock has been able to generate returns of 30% or more for three straight years on four previous occasions and returns of 50% or greater for three straight years twice. It has never had four years in a row of 30% or more returns, but it did have one stretch where its stock rose by 25% or more for five straight years from 2013 to 2017. Let's look at why I think Nvidia can turn in another year of strong performance in 2025. Any investment in Nvidia centers around spending on artificial intelligence (AI) infrastructure. The graphics processing units (GPUs) that it designs have become the backbone of the AI infrastructure buildout, as GPUs can perform many calculations at the same time, making them ideal for use in training large language models (LLMs) and running AI inference. Meanwhile, as AI models become more sophisticated, they need exponentially more computing power, and thus GPUs, to advance. For example, both Amazon's Llama 4 LLM and xAI's Grok 3 model were trained on 10 times as many GPUs as their predecessors trained on. Demand for GPUs is being driven by large hyperscale (companies with massive data centers) tech companies (such as Microsoft, Alphabet, Amazon, and Meta Platforms) as well as well-funded AI start-ups like OpenAI and Elon-Musk backed xAI. Currently, these companies are all racing to create the best and most powerful AI models, leading to what Nvidia has called "insane" demand for its newest-generation Blackwell GPUs. However, growth is not expected to stop, with Nvidia's largest customers, by and large, indicating that they plan to spend more on building out data centers to help power their AI ambitions. Nvidia customers such as Meta Platforms and Alphabet have said the biggest risk with AI infrastructure is underinvesting, as they look to capitalize on what they see as a generational opportunity. Oracle, meanwhile, has said it expects strong AI infrastructure growth to continue over the next five to 10 years. Nvidia isn't the only company that makes GPUs, but it has been able to create a wide moat in large part due its CUDA software platform. GPUs were originally developed to speed up graphics rendering (hence the name) in applications like video games. However, as Nvidia looked to expand the use case for these chips, it created a free software program that allowed developers to program its chips for other tasks. While it took time, this led to CUDA becoming the standard on which developers learned to program GPUs for various tasks, creating the wide moat it has today. Meanwhile, it was arguably the use of its GPUs in cryptocurrency mining that really helped set the groundwork for Nvidia's current AI success today, as it demonstrated the power of its GPUs in high-performance computing. Nvidia has not sat still following its initial CUDA development and in the years since it has built domain-specific microservices and libraries on top of Cuda, called CUDA X, to better optimize it for AI. Meanwhile, the company has also sped up its development cycle for its GPUs to once a year in order to remain at the forefront of GPU technology. The company's biggest challenge at the moment appears to be coming from custom AI chips, such as those Broadcom helps develop for customers. These are custom chips designed for very specific tasks, and thus they can be more efficient. However, it also takes time to design and manufacture custom chips, and like most custom things, they are more expensive. In a world racing for AI, Nvidia's chips are more accessible and cheaper and have an array of AI-specific microservices and libraries through CUDA X. As such, while custom AI chips will likely continue to take some share, Nvidia still looks like it will remain the king of AI chips for the foreseeable future. The final reason why I think Nvidia is poised for another year of outperformance in 2025 is its valuation. Despite its huge gains over the past two years, the stock only trades a forward price-to-earnings (P/E) ratio of about 30 based on 2025 analyst estimates, and a price/earnings-to-growth (PEG) ratio of approximately 0.95. A PEG ratio under 1 is typically viewed as undervalued, but growth stocks will often have PEG ratios well above 1. For a company that just saw its revenue grow by 94% year over year last quarter and which is projected to see 50% revenue growth in 2025, that's an attractive valuation. With AI looking to be still in its early innings and the company having a wide moat, the stock looks like a buy heading into 2025.

AI Darling Nvidia's Stock Could Keep Rising After a Record Year. Here's Why.

It's been a record-breaking year for artificial intelligence (AI) darling Nvidia's (NVDA) stock, and its momentum could be far from over. Despite recent declines that brought the shares into correction territory, analysts remain overwhelmingly bullish on the chipmaker's stock, expecting still more gains as demand for the company's AI chips continues to outpace supply. "The age of AI is upon us, and it's large and diverse," CEO Jensen Huang told investors last month, with Nvidia set to benefit as computing scale grows "exponentially." Analysts are overwhelmingly bullish on Nvidia's upward potential. All but one of the 21 analysts covering the stock tracked by Visible Alpha hold a "buy" or equivalent rating, with the average price target of about $177 implying more than 31% upside from Friday's closing price of $134.70. Booming demand for AI sent sales of Nvidia's chips to support developments in AI, as well as the company's stock price, to record highs this year, with shares more than doubling in value in 2024. That has pulled the value of the company into rich territory, with Nvidia one of only three companies currently sporting market capitalizations in excess of $3 trillion. Last month, the company reported quarterly revenue reached an all-time high of $35.1 billion in the fiscal third quarter, as data-center revenue more than doubled year-over-year to a record $30.8 billion. In the company's earnings call, executives said they've seen "staggering" demand for the company's next-generation Blackwell AI system, which CEO Jensen Huang has called "a complete game changer for the industry." In a mid-December note to clients, Morgan Stanley analysts called Nvidia a "top pick," writing that they expect chipmaker to maintain its AI leadership in the near term, citing its research and development budget and strong relationships with major cloud providers. Citi told clients the next big event to boost the stock could come next month, with CEO Jensen Huang set to deliver a keynote address at the Consumer Electronics Show (CES) on Jan. 6. Citi analysts said they expect Huang could announce higher projections for Blackwell sales at the event, and highlight growth opportunities tied to rising enterprise and industrial demand for robotics. Nvidia is also expected to unveil new graphics cards, and could make other product announcements, according to The Verge. Goldman Sachs analysts also pointed to Nvidia's annual GPU technology conference (GTC) in March. At this year's GTC, Nvidia unveiled the Blackwell platform, announced expanding partnerships with industry leaders, and more. (Its fiscal fourth-quarter earnings report is expected in February.) Huang has said previously the company plans to release a new family of chips each year, with the chipmaker likely to provide more details about Blackwell's successor, Rubin, in the months to come, with its release expected in 2026.

Down 15%, Is Nvidia Stock a Buy Now? | The Motley Fool

There's no question that Nvidia (NVDA 3.08%) has been the leader of the artificial intelligence (AI) revolution thus far. The stock jumped by nearly 10 times since the start of 2023, shortly after the launch of ChatGPT. It rose to become the most valuable company in the world this year, though it has since ceded that position to Apple. Nvidia's strength was on display in its latest earnings report as the company delivered another round of blowout results. Revenue jumped 94% to $35.1 billion, and adjusted net income doubled to $20 billion, or $0.81 a share. Nvidia shares peaked after that third-quarter earnings report on Nov. 21 at a share price of $152.89. However, something surprising happened shortly after that. Nvidia stock started to slide even as the broad market continued to gain as investors seemed to believe that the valuation had again become too inflated. As of Dec. 17, less than a month later, the stock is now down 15% from that peak after falling for four straight sessions in a row. There hasn't been any significant news that's caused Nvidia's slide and no particularly large one-day moves. Perhaps the biggest item was that China opened an anti-monopoly investigation into the company, according to Bloomberg, regarding its 2019 acquisition of Mellanox, which makes networking products for servers and storage equipment. Concerns about a shift in AI spending away from Nvidia's core, increased competition, and the reality that AI has still yet to break through at the consumer or end-user level has weighed on the stock. The stock also pulled back after Broadcom gave strong AI guidance in its fiscal fourth-quarter earnings report last week. While Broadcom doesn't compete directly with Nvidia, its results, which included 220% AI growth in 2024 and guidance of 65% growth in the first quarter, show that the spoils in the AI race may be finally starting to spread beyond Nvidia. Investors, especially those sitting on significant profits in Nvidia, may finally be sensing that it's time to diversify into other chip stocks. Despite the stock's pullback after the initial earnings pop, Nvidia's prospects still look just as strong as they did when the company reported earnings a month ago. It's solved the overheating problems that had delayed the launch of the new Blackwell platform and continues to see demand that is vastly outstripping the supply of its new components. CEO Jensen Huang described demand for Hopper and the new Blackwell platform as "incredible," and CFO Colette Kress said Blackwell demand would exceed supply for several quarters into fiscal 2026, or next calendar year. Meanwhile, Nvidia's fourth-quarter guidance calls for business as usual as the company sees revenue of around $37.5 billion, up 70% from the quarter a year ago, reflecting solid sequential growth in the business. Nvidia's pullback in recent weeks comes as its competition continues to weaken. Intel pushed CEO Pat Gelsinger into retirement earlier this month, leaving the company without a permanent CEO, a further sign of disarray at the legacy chipmaker. Meanwhile, Advanced Micro Devices cut its guidance in its most recent earnings report. Both of those companies have launched challengers to Nvidia's data center GPUs, but they seem unlikely to make a significant dent in Nvidia's lead, especially as Nvidia continues to innovate at a rapid pace. Not only is Blackwell already at full production, but its next platform, Rubin, is already under development. Looking at it from that perspective, the recent sell-off looks like a buying opportunity for Nvidia. Its growth prospects remain just as strong as they were a month ago. The competitive threat seems to have weakened, and investors are generally bullish on 2025 as AI is expected to expand into software and hopes are high that the Trump administration will lower regulations. Nvidia now trades at a forward price-to-earnings ratio of 44 based on this year's consensus, which looks like a great price for a company growing as fast as it is. Nvidia continues to strengthen its competitive advantages, and while its growth should continue to moderate, its valuation leaves room for continued gains. The stock still looks like a buy, especially after the post-earnings pullback.

Meet the Top-Performing Stock in the Dow Jones in 2024. It's Soared 163% So Far This Year, and It's My Highest-Conviction Stock to Buy for 2025. | The Motley Fool

A wave of AI uncertainty and valuation concerns have stopped this highflier in its tracks, but blistering gains could be on the horizon. The Dow Jones Industrial Average is the oldest stock market index in the U.S. This price-weighted index tracks the performance of 30 of the largest publicly traded companies in the country. Its constituent companies span a variety of industries and sectors, and it's considered by many to be a dependable indicator for the health of the economy and of stock market performance in the U.S. Nvidia (NVDA 3.08%) is the most recent addition to the Dow, a move some investors thought was long overdue. The chipmaker joined the iconic index early last month and has gained 163% so far this year (as of this writing), making it the Dow's top performer. Despite its top-ranking performance, some investors have concerns about the future of artificial intelligence (AI) and Nvidia's seemingly frothy valuation. These questions have weighed on the stock, which is essentially flat over the past six months. While some investors are skittish, I'm not among them. In fact, Nvidia is my highest-conviction stock heading into 2025. Let's look at the available evidence to understand why Nvidia could still produce blistering gains for astute investors. Nvidia originally developed the graphics processing unit (GPU) to render lifelike graphics in video games, a task that required tremendous computational horsepower. At the time, the GPU provided a novel solution, breaking up a massive computing job into smaller, more manageable bits. Nvidia quickly discovered that the solution, known as parallel processing, worked equally well for other computationally intensive tasks. The company began marketing GPUs for high-performance computing (HPC). The biggest breakthrough came in 2013 when researchers used GPUs to power deep learning, a predecessor to modern AI. CEO Jensen Huang realized AI was the future and positioned Nvidia to reap the rewards. The move was prescient. Most AI processing occurs in the data center, and Nvidia controlled an estimated 98% of the data center GPU market in 2023, according to semiconductor analyst firm TechInsights. While that share is expected to moderate somewhat when the books are closed on 2024, Nvidia is expected to remain the industry leader by a wide margin. There's no denying that Nvidia has been an early beneficiary of the growing adoption of generative AI. Even in the face of tough, triple-digit comps from last year, its recent results were enviable. For its fiscal 2025 third quarter (ended Oct. 27), Nvidia generated record revenue of $35 billion, which soared 94% year over year and 17% sequentially. This resulted in adjusted earnings per share (EPS) of $0.81, which surged 103%. A performance of that magnitude suggests the adoption of AI continues at a brisk pace. Yet despite its record results, the decelerating growth has some convinced the early opportunity has passed -- yet the evidence suggests otherwise. A report by the Wharton School of Business found that companies are beginning the transition from "initial excitement to deeper experimentation" to better understand the best way to deploy AI to profit their businesses. Furthermore, a survey of 800 business executives found that weekly usage of generative AI has increased from 37% in 2023 to 72% in 2024. The most common use cases include data analytics, contract drafting, and idea generation, and leaders are identifying more targeted applications, which will continue to drive AI adoption for years to come. Looking closer to home, commentary from Nvidia's biggest customers provides compelling evidence that the AI revolution is ongoing. During their respective earnings calls with analysts, Amazon, Microsoft, Alphabet, and Meta Platforms pledged to continue spending heavily on AI, with the bulk of those expenditures allotted to the servers and data centers that facilitate the technology. As the undisputed leader in the data center GPU space, Nvidia will likely win the lion's share of that spending. Nvidia stock has soared over the past couple of years as its processors became the gold standard for AI, cornering the data center GPU market -- where most AI processing takes place. The company's Blackwell family of AI-centric data center chips is due to begin shipping later this year, taking AI to the next level. Just last month, CFO Colette Kress said, "Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us." Beth Kindig, CEO and lead tech analyst for the I/O Fund, calculates that over the coming year, Blackwell chips will outsell all of Nvidia's data center GPU sales for the past two years -- combined. That could lead to as much as 70% upside for Nvidia stock in 2025. Taken together, its robust results, the ongoing adoption of AI, and Nvidia's dominance in the data center GPU market suggest the future looks extremely bright for the GPU maker. While some investors are concerned about the stock's valuation, that requires context as well. Nvidia currently sells for 51 times sales, which seems expensive at first glance. However, over the past 10 years, Nvidia's average price-to-earnings (P/E) ratio has clocked in at about 59, which suggests the current price is historically cheap. Furthermore, Wall Street expects Nvidia to generate EPS of $4.43 in fiscal 2026 (which begins in late January). That works out to roughly 29 times forward earnings, which is an attractive price to pay for a company with so much upside potential. That's why Nvidia is my highest-conviction stock heading into 2025.

Nvidia Is Gaining Today Despite Big Sell-Offs for the S&P 500 -- Is It Time to Buy the Artificial Intelligence (AI) Stock?

Nvidia (NVDA -1.14%) stock is climbing higher in today's trading. The company's share price was up 1.3% as of 3:15 p.m. ET, and had been up as much as 4.8% earlier in the day's trading. Meanwhile, the S&P 500 (^GSPC -2.95%) was down 1.5%, and the Nasdaq Composite (^IXIC -3.56%) was down 1.9% due to hawkish comments from Federal Reserve chairman Jerome Powell that were delivered in conjunction with an interest rate cut. Nvidia stock is gaining thanks to multiple catalysts today. TrendForce published a new report today analyzing the production outlook for the artificial intelligence (AI) leader's next-generation Blackwell processors. TrendForce expects production of the company's GB200 processors to ramp rapidly and hit peak output in the second and third quarters of next year. Production of the new chips has largely gone as expected so far, and that's a good thing for Nvidia and its investors. Nvidia stock may have also gotten a boost from a new report from The Financial Times indicating that Microsoft has purchased more than twice as many of the AI processing leader's chips this year than the company's second-largest customer, which is Meta Platforms. This could signal that Meta and other large tech companies still have plenty of investing to do when it comes to AI infrastructure. Additionally, Nvidia announced the Jetson Orin Nano Super Developer Kit, a new generative AI processor for hobbyists and students priced at $249. Is Nvidia stock a buy? Nvidia stock has been red hot this year and risen roughly 167% across the stretch. While its share price is down roughly 11% from its all-time high, the company still has a highly growth-dependent valuation and is a high-risk, high-reward investment candidate. NVDA PE Ratio (Forward) data by YCharts Valued at roughly 45 times this year's expected earnings, some strong future performance is already baked into Nvidia's share price. On the other hand, the company has been growing sales and earnings at a breakneck pace -- and impressive momentum looks poised to continue. The stock currently has a forward price-to-earnings-growth (PEG) ratio of roughly 0.3. Meanwhile, a PEG ratio of less than 1 is often taken to be an indicator that a company is undervalued because its earnings have been expanding at a rate faster than corresponding increases for its valuation. Given Nvidia's dominant position in processors for advanced AI applications, the stock still looks like a worthwhile buy for risk-tolerant investors at today's prices. While the business will undoubtedly see some cyclical demand shifts that shape sales and earnings performance, there are good reasons to think that investment in AI infrastructure is still in the very early innings of its long-term trajectory.

4 Tech Titans Will Spend a Combined $300 Billion on Artificial Intelligence (AI) in 2025, According to 1 Wall Street Firm. This Stock Could Be the Biggest Winner. | The Motley Fool

Artificial intelligence (AI) is the most revolutionary technology in a generation. Its ability to instantly generate text, images, videos, and even computer code could drive a productivity boom for businesses all over the world. The industry is still in its infancy, but Wall Street's forecasts suggest AI could add anywhere between $7 trillion and $200 trillion to the global economy during the next decade. That's why technology giants are battling one another for AI supremacy and spending astronomical amounts of money on data center infrastructure and chips. According to an estimate from investment bank Morgan Stanley, four technology giants alone could invest a combined $300 billion in capital expenditures (capex) in 2025. Driving that spending will be AI, and with Nvidia (NVDA 3.08%) supplying the most advanced chips in the industry for AI development, its stock could also be the biggest winner from the spending boom. In order to make "smarter" AI software, developers need to train more sophisticated large language models (LLMs). That requires more data and also more processing power, which is the expensive part. Outside of cashed-up AI start-ups like OpenAI and Anthropic, most businesses can't afford to build their own data centers. Instead, they rent computing capacity from tech giants that are building centralized infrastructure. Based on public filings, here's how much some of those tech behemoths are allocating to capex, including AI infrastructure: Chips are a massive component of that spending. During 2023, Nvidia's H100 graphics processing units (GPUs) were the go-to choice for AI development, granting the company a market share of 98%. They remain a hot seller today, but Nvidia just started shipping its new Blackwell GPUs, which offer a substantial leap in performance. Morgan Stanley expects four tech giants to spend a combined $300 billion on capex in 2025. Based on its forecast: Those figures represent material growth from what those companies are on track to spend in 2024. It's impossible to know how much of that money will go toward chips, specifically. But Morgan Stanley issued a forecast back in October that suggests Nvidia could ship up to 800,000 units of its Blackwell-based GB200 GPU during the first three months of 2025 alone. Price estimates range between $60,000 and $100,000 per GB200 GPU (according to Forbes), so those sales could translate into $64 billion of revenue during the first quarter of 2025 (based on an average price of $80,000 per GPU). Since Nvidia generated $35 billion in total revenue in its most recent quarter, that implies significant growth could be around the corner. Reports suggest Microsoft is already the biggest buyer of GB200 GPUs, and Nvidia says Oracle plans to build a cluster using over 131,000 of them. The GB200 NVL72 system can perform AI inference at 30 times the speed of the equivalent H100 system, so it's no surprise there's a line of buyers that stretches around the block. Now, let's talk about what all of that spending could mean for Nvidia stock because despite its 700% gain over the last two years, it might actually still be cheap. Nvidia is on track to generate $129 billion in revenue during its fiscal 2025 (which ends in January), but it's also highly profitable. The company has delivered $2.54 in earnings per share (EPS) over the last four quarters, giving it a price-to-earnings (P/E) ratio of 53.5 as of this writing. That's below its 10-year average of 58.8: However, the picture gets even better when you look into the future. Based on Wall Street's consensus forecast for Nvidia's fiscal year 2026 (which begins in Feb. 2025), the company could generate $4.43 in EPS on $195 billion in revenue. That means Nvidia stock trades at a forward P/E ratio of just 30.6. In other words, the stock would have to soar over 90% throughout next year just to trade in line with its 10-year average P/E ratio of 58.8. And there might even be further upside potential based on the fact Nvidia has consistently beaten Wall Street's expectations.

Meet the Supercharged Growth Stock That's One of This Year's Biggest Winners. The Company Could Hit $50 Trillion by 2034, According to 1 World-Renowned Analyst | The Motley Fool

Nvidia's long track record of innovation, strong secular tailwinds, and market leadership could drive its market cap to wild levels. James Anderson may not be a household name, but there's no denying the legendary investor has made his mark. He spent more than two decades with the Scottish investment management firm Baillie Gifford, directing its premiere Scottish Mortgage Investment Trust and raking up gains of 1,700% in the process. He's now a managing partner at Lingotto Investment Management. He made his name by spotting early and betting heavily on some of the tech sector's most iconic companies, including Amazon, Tesla, and Nvidia (NVDA 3.08%), among others. So when Anderson talks, investors would do well to listen. Earlier this year, Anderson made a bold prognostication, saying that if the adoption of artificial intelligence (AI) continues at its current pace, Nvidia could be worth as much as $50 trillion 10 years from now. While that might seem a fantastical assertion at first glance, he makes a compelling case. Let's take a look at the factors that could drive Nvidia's value to that unthinkable height. There's no denying the impact AI has had on Nvidia's fortunes over the past couple of years, but it's worth reviewing recent history to provide some context. In just the past 12 months or so, the company's market cap has soared from $1.2 trillion to $3.2 trillion (as of this writing) -- adding $2 trillion to its value. This all came about because the company's most powerful graphics processing units (GPU) have become the gold standard for AI processing. Nvidia's results have been phenomenal. It generated five consecutive quarters of triple-digit percentage growth before it inevitably ran up against tough comps. Despite that, in its fiscal 2025 third quarter (which ended Oct. 27), Nvidia still grew its revenues by 94% year over year to $35 billion. This resulted in its diluted earnings per share (EPS) soaring by 103% to $0.81. During the first nine months of its fiscal 2025 (which ends in late January), Nvidia has generated revenue of $91 billion, and it's on track to surpass $129 billion for the year. Sales of that magnitude would have been unimaginable just a few years ago. For example, the $35 billion in revenue Nvidia generated in its most recent quarter far eclipsed the $27 billion in sales it generated for all of its fiscal 2023. Yet these monumental gains could be just the beginning. The AI market could conceivably be worth $15.7 trillion by 2030, according to analysts at PwC, who also noted that "AI is still at a very early stage." If Nvidia reaps just a sliver of that addressable market, its sales and profits could continue to soar. Anderson suggests that demand for AI chips used in data centers -- where most AI processing takes place -- is currently increasing by about 60% annually. Assuming that this growth continues at the same pace, and that Nvidia is able to maintain its profit margins over the course of a decade, in 20234, that would give it an EPS of $1,350. At that point, Nvidia would be worth about $20,000 per share, translating to a market cap of roughly $49 trillion, according to Anderson. There's no denying that Amazon and Tesla have both been extraordinarily profitable investments. Amazon stock has gained 229,200% since its IPO, while Tesla is up more than 27,000%. Anderson notes, however, that these opportunities were different because these companies "didn't start from highly profitable and dominant positions but had to get there." There's no denying Nvidia's dominance. It still has the leading share of the gaming chips market that started it all. In the calendar third quarter, Nvidia's share of the desktop GPU market climbed to 90%, as its graphics cards remain the go-to choice for gamers everywhere. Nvidia also dominates the data center space. The company boasted a 98% market share in data center GPUs in both 2022 and 2023. While most expect its share price to moderate in 2024 in the face of increasing competition in the AI chip segment, it's still expected to be the undisputed market leader. Its market dominance aside, there are other reasons Anderson is bullish on Nvidia. The company's "persistent exponential progress, the competitive advantages in hardware and software, and the culture and leadership are exactly what we look for," he noted. It's worth running the numbers to see what it would take for Nvidia to reach a value of $50 trillion, as unlikely as it might be. Nvidia currently has a market cap of roughly $3.2 trillion, so it would take a stock price gain of 1,458% to drive its value to $50 trillion. Wall Street expects Nvidia to generate revenue of roughly $129 billion in its fiscal 2025, giving it a forward price-to-sales (P/S) ratio of about 25. Assuming its P/S remains constant, Nvidia would need to grow its revenue to roughly $2 trillion annually to support a $50 trillion market cap. Wall Street is predicting revenue of $195 billion next year. Using that as a starting point, Nvidia would have to grow its revenue by 35% annually until 2034 to generate revenue of $2 trillion. While that's a high bar, it's certainly possible. Fun with math aside, there is a long list of potential issues that could derail Nvidia on its unlikely path to $50 trillion: There are many more potential roadblocks, but you get the picture. Anderson was very clear to point out (italics mine), "This isn't a prediction but a possibility if artificial intelligence works for customers and Nvidia's lead is intact." He went on to note that the probability of the company reaching that lofty height was (in his view) a fairly slim 10% to 15%. Yet Anderson remains focused on the big picture. "It is the long duration of the development of [GPU] usage in AI -- and not just AI -- from excitement, through potential pauses, to transformation of industries that is most important to us," Anderson noted. There's the matter of Nvidia's valuation, which is frankly complicated. It's currently trading for 51 times earnings. That seems expensive at first glance, but trailing valuations rarely keep up with high-growth stocks. For example, Nvidia's average P/E multiple over the past decade is 59, which suggests the stock is historically cheap now. Furthermore, Nvidia is also trading at roughly 29 times next year's expected earnings, which is an attractive price relative to the opportunity. Asking whether Nvidia could hit $50 trillion might be the wrong question. Rather, investors should be asking themselves whether they should invest in an industry leader with a long track record of innovation, that is being driven by once-in-a-generation secular tailwinds, especially if they can buy the stock at a reasonable price. Based on those criteria, Nvidia is definitely a buy.

Has Artificial Intelligence (AI) Darling Nvidia Finally Flown Too Close to the Sun? | The Motley Fool

When analyzing Nvidia (NVDA 3.08%), you can probably forgive some investors for writing it off as overvalued. The stock is up around 12-fold since its bear market low in 2022. Its valuation and growth rate stoke fears that it's flying too close to the sun and will crash when its wings melt. Even its most ardent bulls will concede it is not a cheap semiconductor stock. Still, saying it's "too close to the sun" is likely an exaggeration, and here's why. Nvidia changed the face of the semiconductor industry upon the release of an upgraded version of ChatGPT in early 2023. When observers saw that AI accelerators powered the upgraded performance, demand for these AI chips went into the stratosphere, and Nvidia was the company best prepared to meet the demand. Consequently, this product has fundamentally changed Nvidia. Three years ago, in the third quarter of fiscal 2022, the data center segment, which designs AI accelerators, contributed a smaller share of revenue than Nvidia's original business, gaming. However, by the third quarter of fiscal 2025 (ended Oct. 27), the data center segment accounted for 88% of revenue! Indeed, competitors such as AMD, Intel, and Qualcomm have scrambled to close the competitive gap. Since demand for AI accelerators exceeds the supply, the competitors have a market. Nonetheless, Nvidia's innovation has kept it firmly in the lead in this area. With this ability to stay ahead, it is unlikely any of its competitors will catch up anytime soon. You might assume Nvidia has flown too close to the sun when looking at some of its results more closely. At first glance, they point to phenomenal growth, with its fiscal third-quarter revenue of $35 billion rising 94% year over year. With that increase, its net income of $19 billion was up 109% over the same period. Investors should remember that large companies tend to grow more slowly due to the law of large numbers. Hence, the fact that Nvidia can grow so much despite its $3.2 trillion market cap is nothing short of impressive. Still, over the first three quarters of fiscal 2025, its revenue grew 135%. That led to a rise in net income of 190%, indicating a slowdown has begun. Triple-digit revenue growth is unsustainable even for companies that are a fraction of Nvidia's size. Still, investors tend to punish stocks when those increases inevitably slow, which may be happening to Nvidia. And its valuation could contribute to the decline. A superficial look at its stock may not indicate any overvaluation since its trailing P/E is 52. Also, its price-to-sales ratio (P/S) of 29 is probably elevated but not unheard of for a high-flying tech stock. But its ratio of price to book value (P/BV) arguably places the stock in bubble territory. Currently, Nvidia trades at a book value multiple of 49, far above the P/BV ratios of AMD and its leading manufacturer, Taiwan Semiconductor, which sell at 3.6 times and 8.3 times book value, respectively. That massive premium could prompt more investors to sell the stock even as it continues its dominance with AI accelerators. Although Nvidia is likely to feel some heat in the near term, it is likely not too close to the sun. Given the slowing revenue growth and the 49 P/BV, the price of the stock is undoubtedly ahead of itself. This could lead to struggles or outright declines in the short term and possibly beyond. However, its massive growth should increase Nvidia's "heat resistance" over time. When its sales and book value multiples fall to a level that is more in line with its growth and earnings, the company will be able to fly at higher altitudes -- likely higher than it does now. Hence, even if Nvidia appears too close to the sun right now, investors should not expect that to be the case over the longer term.

Why Nvidia Stock Rallied on Wednesday | The Motley Fool

After a dip into correction territory, a couple of new developments appear to be fueling the AI specialist's rise. Heading into today's trading session, Nvidia (NVDA 4.02%) stock was officially in correction territory, having fallen more than 12% off its recent high. It was on track to erase some of those losses today, jumping as much as 4.8%. As of 11:46 a.m. ET on Wednesday, the stock was still up 3.4%. The catalysts that sent the chipmaker and artificial intelligence (AI) specialist higher were several news items that bode well for Nvidia. Cloud service providers have been the company's biggest customers by far, representing about 50% of its data center revenue in its fiscal 2025 third quarter (ended Oct. 27), according to chief financial officer Colette Kress. Investors may have some additional insight into Microsoft's purchases this year, courtesy of the Financial Times. The publication suggested Microsoft "bought twice as many" of Nvidia's Hopper chips than any of its competitors in 2024. The report cited data compiled by technology consultants at Omdia as saying Microsoft bought 485,000 chips, compared to the next largest purchaser, Meta Platforms, with 224,000. This suggests rivals might have to go on a buying spree to catch up. Also, Nvidia announced what it calls its most affordable generative AI supercomputer, the Jetson Orin Nano Super. This compact unit fits in the palm of a hand, according to the company, providing AI capabilities for "hobbyists and students" for just $249. That's half off the previous generation and further expands the market to less affluent users. The evidence keeps mounting that the adoption of AI continues unfettered, though some investors have expressed concern that Nvidia may have gotten ahead of itself -- and at 53 times earnings, that view is understandable. That said, over the past decade, the stock has traded for roughly 59 times earnings, which suggests it's on sale, at least from a historical perspective. And for its fiscal 2026, which begins in late January, Nvidia is selling for roughly 29 times next year's estimated sales. Given the company's growth trajectory, that could well be a bargain.