Nvidia's Stock Soars to All-Time High Amid AI Boom and Strong Growth Prospects

Could Nvidia Stock Hit $150 Before 2024 Is Over? | The Motley Fool

Nvidia (NVDA 0.89%) is having quite the run in 2024. It entered the year trading for roughly a split-adjusted $50 but has rocketed all the way up to around $130. Now, the question is, could Nvidia reach $150 before 2025 arrives to secure a second consecutive year of its stock price tripling? It doesn't have far to go, but there are still many trading days left before the end of 2024, which could bring some surprises. Nvidia's incredible rise has been directly tied to the artificial intelligence (AI) race. Many companies are trying to develop a leading AI model for its platform and other service providers (like the cloud computing giants) are increasing computing power by purchasing more Nvidia graphics processing units (GPUs). GPUs are suited for this task because of their ability to process multiple calculations in parallel. Combine that aspect with being able to connect thousands of GPUs in clusters, and you have the ability to process intense AI workloads very quickly. These GPUs aren't cheap, either. One of the more popular Nvidia GPUs is the H100, which is estimated to cost around $25,000 apiece. So, when you see articles about companies that employ 10,000 GPUs, like Tesla's Dojo computer, it's safe to assume that it cost around $300 million by the time other items in the systems are accounted for. But GPUs aren't a subscription service, so Nvidia needs to continue selling more GPUs to grow. One factor that could help Nvidia grow is its new GPU architecture, Blackwell. Blackwell offers massive advantages over the previous generation, Hopper. It consumes less energy and can run calculations much faster than Hopper. This could spur some customers to upgrade their existing hardware, which could be a catalyst for further growth. Blackwell's launch has been pushed back a few times and is currently scheduled to start ramping up production during the fourth quarter of 2024. We'll get an update when Nvidia announces its Q3 of fiscal year 2025 earnings sometime in late November; that update could be what the stock needs to reach $150 before 2024 is up. There are a lot of high expectations baked into Nvidia's stock. Right now, it trades for 48.6 times forward earnings, which is a pretty big premium. Most companies don't trade at this level for long unless they can sustain rapid growth. Instead, they either meet expectations, and their valuation slowly declines, or they fail to meet those lofty goals, and investors dump the stock. Then, the valuation comes down because the stock price declined. So far, Nvidia has been able to meet the lofty expectations the market has attached to its stock, but it must continue doing that throughout 2025 and beyond to deliver the returns shareholders have been accustomed to. But the question is, could Nvidia rise to $150 before the year is up? I think it's possible with how much excitement there has been centered around AI, especially if Nvidia's Q3 fiscal-year 2025 (ending in late October 2024) is strong. We won't know those results until the end of November. There's also an election between now and those results being available, and the market could react strongly in one way or another depending on the outcome, or it may do nothing. If you look into the future, there are many unknowns, but one thing that seems certain is that we're only at the start of AI integration. We'll need more GPUs in the future to fully maximize AI's capability, so if Nvidia can't hit $150 this year, I'm positive it will likely hit it sometime in 2025.

Where will Nvidia Stock Be in 1 Year? | The Motley Fool

Semiconductor giant Nvidia's (NVDA 3.13%) stock has recorded eye-popping gains of nearly 528% in the past three years -- and nearly 167% in 2024. It is no secret that the company's absolute dominance in the rapidly growing artificial intelligence (AI) market has been the key driving force behind this growth. However, Nvidia's glory days are far from over. The global AI market is expected to grow at breakneck speed. While there is no consensus about the overall size of the AI market, most analysts expect it to be worth hundreds of billions to almost $1.8 trillion by 2030. Nvidia's leadership in AI-optimized hardware and software has positioned it as a major beneficiary of this tailwind. Nvidia is well positioned to continue its share price trajectory next year, albeit with few major pullbacks as some investors start rotating out of equities to fixed-income investments amid rate cuts. Here's what to expect from Nvidia in the coming year. According to Citi Research estimates, global data center capital expenditures by the big four cloud providers -- Amazon, Meta Platforms, Microsoft, and Alphabet -- are expected to grow by 40% to 50% in 2025. The research firm also expects data centers to increase AI cluster sizes to more than 300,000 GPUs by 2025 -- and train and run large AI models not in one data center, but across multiple data centers. Being the current undisputed technological leader with 70% to 95% of the global AI chip market, Nvidia stands to benefit significantly from the increasing expansion of the worldwide data center infrastructure. Nvidia's data center business is poised to grow at an impressive pace, thanks to its already large installed GPU base and the widespread adoption of the CUDA parallel computing platform. Since developers are keen on ensuring maximum utility and broad adoption of their AI applications, the majority prefer Nvidia hardware and software over competitors. This network effect has helped the company build a strong competitive advantage in the AI market. In the recent quarter (the second quarter of fiscal 2025, ended June 30, 2024), the company reported record data center revenue of $26.3 billion, up 154% year over year, driven mainly by the robust demand for its Hopper architecture chips and networking systems. While cloud service providers accounted for 45% of the data center revenue, more than 50% can be attributed to consumer internet companies and enterprise companies. According to imarc estimates, the global enterprise AI market is estimated to grow annually at a compound average growth rate of 34% from $22.8 billion to $341.5 billion in 2032. Nvidia is also well positioned to capitalize on this opportunity since it is already working with most Fortune 100 companies on multiple AI initiatives. The company has also introduced NIM Agent Blueprint, a catalog of reference applications that includes software to help enterprises build and deploy custom generative AI applications including AI chatbots, AI agents, and generative AI copilots. Hence, enterprise AI can emerge as a major growth catalyst in the coming year. Nvidia is committed to maintaining its technological leadership in the ever-changing AI landscape. The company has switched to a one-year product cadence from the previous two-year timeframe -- implying the company will launch major new products and software annually. Nvidia is scheduled to ramp up production of its Blackwell GPUs in the fourth quarter of fiscal 2025 and continue in fiscal 2026. Since Blackwell chips provide three to five times more AI throughput in a power-limited data center than Hopper GPUs, the demand for these chips is already above supply. In a recent CNBC interview, CEO Jensen Huang claimed that the demand for Blackwell chips is "insane." Management expects Blackwell's sales to contribute several billion dollars to Nvidia's revenue in the fourth quarter. As Blackwell sales grow, Nvidia may see further improvement in its top- and bottom-line numbers. Analysts expect Nvidia's fiscal 2025 revenue and adjusted earnings per share (EPS) to be $125.5 billion and $2.84, respectively. This would imply a year-over-year revenue growth of nearly 106% and EPS growth of $119%. With such robust growth estimates, the consensus analyst target price is $152.44 -- implying an upside potential of 13.09%, which seems easily achievable. Considering the robust demand for both the Hopper and Blackwell GPUs, the company's strong moat, and unfolding opportunities in the data center and enterprise AI segments, the company's highest estimated target price of $200 -- implying an upside of almost 48% -- seems to be within reach in the next year. Hence, Nvidia seems poised to prove to be a smart purchase in 2024.

Where Will Nvidia Stock Be in 2025? | The Motley Fool

The red-hot rally that started in shares of Nvidia (NVDA -0.01%) toward the end of 2022 is now almost two years old, and the chip giant has delivered 11x gains during this two-year period. So, an investment of just $100 made in Nvidia stock a couple of years ago is now worth more than $1,100. More importantly, it appears that the company's phenomenal run could be sustainable in 2025 as well, thanks to the developments in the artificial intelligence (AI) chip market. Here, we will take a closer look at the reasons why Nvidia's stunning run may continue next year. Consensus estimates forecast Nvidia to end the ongoing fiscal year 2025 with $125.5 billion in revenue, which would be a 125% increase from the previous year. However, analysts at KeyBanc are forecasting the company's revenue to come in at $130.6 billion in the current fiscal year (which will end in January 2025). KeyBanc points out that Nvidia is on track to deliver stronger growth this year thanks to the sales ramp of its new Blackwell AI processors. That's not surprising, as Nvidia management pointed out on the recent earnings conference call that it expects "to get several billion dollars in Blackwell revenue" in the fourth quarter of fiscal 2025. At the same time, Nvidia believes that the sales of its current-generation Hopper chips, the H100 and H200 processors, are on track to increase in the second half of fiscal 2025 on the back of strong demand and improved supply. KeyBanc analysts also point out that the demand for these Hopper chips is extremely strong. Even better, Nvidia's suppliers are taking steps to ensure that the chip giant is able to fulfill more orders. For instance, contract electronics manufacturer Foxconn has announced that it is building the world's largest production facility for Nvidia's GB200 Grace Blackwell Superchip. This particular chip consists of two of Nvidia's B200 Tensor Core GPUs (graphics processing units) that are connected to its Grace CPU (central processing unit). Each Nvidia GB200 Superchip is expected to be priced between $60,000 to $70,000. More importantly, the server systems manufactured using multiple GB200 Superchips are in robust demand. Nvidia reportedly increased its orders for the Blackwell GPUs by 25% in July this year, and Foxconn's announcement suggests that demand remains robust. Market research firm TrendForce estimates that Nvidia could ship 60,000 units of GB200 NVL36 servers next year, and this particular configuration reportedly commands an average selling price of $1.8 million. What that means is that Nvidia may be able to sell $108 billion worth of its GB200 NVL36 servers next year. Meanwhile, Japanese investment bank Mizuho is forecasting sales of 6.5 million to 7 million units of Nvidia's AI graphics cards next year, suggesting that the company could pull in close to $200 billion in data center revenue in calendar 2025 (which will coincide with the majority of its fiscal 2026). If that indeed happens, Nvidia could be well on its way to smashing analysts' revenue expectations for the next fiscal year. As the chart shows us, analysts are expecting Nvidia to clock $177 billion in revenue in fiscal 2026. The estimate has moved substantially higher as the year has progressed. So, there is a good chance that it could indeed breach the $200 billion mark going forward, considering the potential revenue that Nvidia is expected to generate from sales of its data center chips alone. That healthy jump in Nvidia's revenue is set to translate into impressive earnings growth as well. Analysts are expecting Nvidia to post $4.02 in earnings in fiscal 2026, up 41% from this year's projected earnings of $2.84 per share. However, next year's earnings estimate has moved up significantly in the past 90 days. Three months ago, consensus estimates were projecting $3.69 per share in earnings from Nvidia for the next fiscal year. In all, Nvidia seems well placed to sustain its healthy growth next year as well. The stock has a median 12-month price target of $150, per 65 analysts covering it, pointing toward a 13% upside from current levels. However, the Street-high 12-month price target of $203 would translate into 53% gains from where this AI stock is right now, and it won't be surprising to see Nvidia approaching that mark in 2025 thanks to the points discussed.

Where Will Nvidia Stock Be in 1 Year? | The Motley Fool

The roller coaster doesn't seem to be stopping as Nvidia (NVDA 2.98%) The centerpiece of the artificial intelligence (AI) boom has also been the main driver of the S&P 500 index's performance since late 2022. This year alone, roughly a quarter of the index's 20% rise can be attributed to the chipmaker. That's a lot of weight on Nvidia's shoulders. Investors are hyperfocused on its every move, seeing it as a bellwether for the market at large. The good news for investors, then, is that the AI giant is charging full steam ahead. It will face challenges and overcome obstacles, but Nvidia has several catalysts that could boost its bottom line in the not-too-distant future. What will the next year bring for Nvidia? The uber-powerful chips the company designs and sells are the backbone of its success. That's why investors were spooked when the company announced its first real snafu since the AI boom took off. Production issues were discovered in the newest version of its AI chips originally set to begin rolling out in the third quarter. These chips, dubbed Blackwell, are now expected to hit the market a quarter later in Q4. Luckily, this delay is shorter than some feared, and the company assured investors that the delay had been accounted for in its guidance. Critically, any loss from Blackwell chips in the short term is being compensated for by the still extremely high demand for its current-generation Hopper chips. When Blackwell does begin rolling out, the company expects the demand to be even stronger. As CEO Jensen Huang put it, "The anticipation for Blackwell is incredible." Now, while Nvidia has generally delivered on its promises in the past, it's a good idea to take a company's promises with a grain of salt. Company brass was a little light on details around the delay, and there is always a chance that things won't go as planned. If more delays are announced, it could spell trouble for Nvidia. Still, I don't see any reason to believe that will happen here or that this will develop into a major problem. Nvidia's data center segment, under which its AI chips fall, is by far its most lucrative. I think the chart below puts into perspective just how important the segment is for the company. See that incredible inflection point in 2023? That is almost entirely coming from its data center growth. Now, its chips are undoubtedly the heart of this, but it's not the only product the company offers in this segment. Nvidia aims to be a full-service provider of data center hardware and software. Nvidia has a platform called Spectrum-X that, although launched as recently as last year, has already seen a big uptick in sales. The platform is a networking solution that allows customers to keep up with the intensive networking demands of AI computing without abandoning ethernet. Ethernet -- a networking technology -- has been the standard for decades and is used in almost every data center in the world. As Nvidia continues to build ever more powerful chips, existing ethernet networks are struggling to keep up with the flow of data, creating a bottleneck. This could mean having to retrofit a data center, removing the miles and miles of ethernet cables and associated hardware, and replacing it with faster technology. Remember, these data centers are massive -- we're talking the size of multiple football fields in some cases -- so you can imagine this would be incredibly costly. Spectrum-X allows the bones of these networks to remain, upgrading only critical parts of the network infrastructure. This is a huge cost saver for data centers. Nvidia leadership was excited by Spectrum-X in the company's latest earnings call. CFO, Colette Kress reported that Nvidia's "Ethernet for AI" -- of which Spectrum-X is a primary part -- revenue "doubled sequentially with hundreds of customers adopting our Ethernet offerings" and that the platform "has broad market support from OEM and ODM partners." The company expects Spectrum to be a multibillion-dollar product line in a year. Beyond this, Nvidia is rolling out new software to help companies build custom AI solutions and is pushing further into the automotive industry, a segment that could be massive in a few years' time once driverless technology matures. In the short term, however, this will still be a significant revenue source as AI is integrated into car "infotainment" systems. This is already happening, but expect to see more car companies advertise this system in the coming year. Without getting specific about a price target, I think Nvidia will outperform the market over the coming year. Yes, at a price-to-earnings ratio (P/E) of 56.07, it does carry a premium, but this is pretty much at or below where it has been trading since the beginning of 2020. Furthermore, its forward P/E is currently sitting at 34.2, slightly below its average since the AI boom took off. These figures look fine to me considering Nvidia's growth potential.

Nvidia stock soars to all-time high of $140.77 amid robust growth By Investing.com

In a remarkable display of market confidence, Nvidia Corporation (NASDAQ:NVDA)'s stock has surged to an all-time high, reaching a price level of $140.77. This milestone underscores a period of significant growth for the tech giant, known for its powerful graphics processing units (GPUs) and expanding presence in the fields of artificial intelligence and deep learning. Over the past year, Nvidia has seen its stock value skyrocket, with an impressive 1-year change of 231.15%, reflecting investor optimism about the company's innovative product lineup and strategic market positioning. The all-time high represents not just a peak in Nvidia's stock performance but also a testament to the company's enduring appeal in a competitive technology landscape. In other recent news, Taiwan Semiconductor Manufacturing Co (TSMC), the world's top contract chipmaker, has been making waves in the semiconductor industry. TSMC is expected to report a substantial 42% increase in third-quarter profit, according to an LSEG SmartEstimate based on 23 analysts' predictions, primarily driven by the rising demand for artificial intelligence (AI) chips. The company also announced a positive sales forecast, which included a higher expectation for annual revenue growth, particularly from sales of AI chips. This projection has boosted investor confidence and caused a surge in U.S. chip stocks. However, the industry also faced some turbulence after ASML (AS:ASML), a leading equipment manufacturer for the semiconductor industry, reported a weaker-than-expected orders outlook. This news had a significant impact on the global chip sector, causing a stir in stock prices. ASML's announcement led to a decline in its share value and also affected other major players in the semiconductor industry, including Nvidia and AMD (NASDAQ:AMD). Despite the challenges, TSMC continues to expand its manufacturing capabilities, with billions being invested in new factories, including $65 billion for three facilities in Arizona. The company also revised its capital expenditure budget to between $30 billion and $32 billion, an increase from the previously estimated range of $28 billion to $32 billion. These recent developments reflect the dynamic and rapidly evolving nature of the semiconductor industry. Nvidia's remarkable stock performance is further supported by recent data from InvestingPro. The company's market capitalization has soared to an impressive $3.45 trillion, solidifying its position as a major player in the tech industry. Nvidia's financial health is robust, with a revenue of $96.31 billion over the last twelve months as of Q2 2025, representing a staggering year-over-year growth of 194.69%. InvestingPro Tips highlight Nvidia's strong market position and financial performance. The company boasts impressive gross profit margins, which stand at 75.98% for the last twelve months. This high profitability is a key factor in Nvidia's ability to invest in research and development, fueling its innovation in GPUs and AI technologies. Another InvestingPro Tip notes that Nvidia is trading near its 52-week high, currently at 96.42% of that peak. This aligns with the article's mention of the stock reaching an all-time high, reflecting strong investor confidence in the company's future prospects. For investors seeking a deeper understanding of Nvidia's potential, InvestingPro offers 23 additional tips, providing a comprehensive analysis of the company's financial health and market position.

Nvidia Stock: Buy at the High? | The Motley Fool

Should you bet on a fresh wave of growth or view Nvidia with caution? Nvidia (NVDA -4.69%) is one of the S&P 500 index's top performers so far this year, heading for a gain of nearly 180%. The stock even reached its highest ever in recent days. This isn't surprising considering Nvidia's dominant position in the high-growth artificial intelligence (AI) chip market. Nvidia's graphics processing units (GPUs) are the fastest around, and customers have flocked to the company for these chips as well as a broad variety of other AI products and services. All of this has equaled mind-boggling earnings growth for Nvidia. The company has reported quarter after quarter of triple-digit revenue and profit gains. And it looks as if this is set to continue, considering a key product launch on the horizon and outsize demand for that and other Nvidia products. Does this earnings momentum and future potential mean you should buy Nvidia at the high -- or is it time to approach this top AI player with caution? Let's find out. First a bit of background on Nvidia. The company has progressively increased earnings over time, initially focusing on the video game market and then broadening its reach into other industries. The AI boom helped earnings truly take off, as Nvidia's GPUs emerged as the "go-to" tool for crucial tasks such as the training and inferencing of models. As a result, Nvidia's recent quarterly revenue surpassed the company's annual revenue as recently as fiscal 2023. And in the latest quarter, Nvidia reported record revenue of $30 billion, with 87% of that coming from the data center business. (Data center includes Nvidia's AI activities.) Looking ahead, great potential exists for more growth, and this is thanks to a launch on the horizon as well as Nvidia's ongoing focus on innovation. The company has developed a new architecture known as Blackwell along with its highest-performance chip ever and five other game-changing innovations. The company says it plans on ramping production in the fourth quarter and expects "several billion dollars" of revenue to start flowing in during the period. Nvidia has reason to be so optimistic because demand for Blackwell has surpassed supply even as the company works day and night to try to keep up. And the tech giant expects this trend to continue into next year. At the same time, demand for earlier architecture, Hopper, remains strong as well. This should result in solid revenue growth in the coming quarters. And this should extend well beyond the launch of the new Blackwell architecture thanks to Nvidia's pledge to update its chips on an annual basis. So, if Nvidia follows that plan, it suggests the company won't be in a position of weakness, and instead will continue building on its strengths before rivals have the time to catch up. Of course, there's always the possibility that a new player will come up with another way of powering AI tasks -- and this could threaten Nvidia's dominance. For example, Cerebras Systems, a company planning an initial public offering, has launched a technology that could rival Nvidia's GPUs. But, even if this and other small companies have a promising product, it won't be easy to upset Nvidia's leadership position. Nvidia has spent years winning the confidence of its customers by delivering top-performing products -- so they may not easily switch to a younger rival with a shorter track record of success. Now, let's get back to our question. Should you buy Nvidia at the high or view the stock with caution? I favor buying at the high for a couple of reasons. First, Nvidia may have reached a record high, but the stock still remains reasonably priced considering the company's track record and long-term prospects. It trades for 48x forward earnings estimates. Second, since we are looking at this investment through a long-term lens, it means we'll hold on for at least five years (and possibly much longer). And in that time period, it's very likely Nvidia stock will head higher thanks to demand for its products, its innovation, and overall growth in the AI market. So, I don't think that, here at this record level, Nvidia has reached its full potential. And that means there's reason to be optimistic about this top AI player and buy and hold for the long run.

Nvidia Stock Has Soared Over 20% in 5 Weeks. Here's Why Wall Street Thinks It's Still a Buy. | The Motley Fool

Standing at the center of the revolution. That's where Nvidia (NVDA 3.13%) finds itself. The revolution, in this case, is being fueled by the rapid developments in artificial intelligence (AI). Nvidia has delivered such massive gains in recent years that it's easy to overlook how the stock has performed over the short term. Most investors would be happy with a 20% gain in a year. Nvidia's share price has soared over 20% in the last five weeks. And analysts don't think the momentum will evaporate. Here's why Wall Street thinks Nvidia stock is still a buy. We can explain Nvidia's recent impressive gains in one nine-letter word: Blackwell. Nvidia CEO Jensen Huang said in an interview with CNBC earlier this month the demand for his company's new Blackwell AI chip is "insane." He explained, "Everybody wants to have the most and everybody wants to be first." The market response to Blackwell isn't surprising. When Nvidia first introduced the new GPU architecture in a March 2024 press release, the headline stated that the Blackwell platform would "power a new era of computing." That wasn't just spin from the company's marketing team. Blackwell can run large language models (LLMs) with 1 trillion parameters at up to 25 times less cost and energy consumption than Nvidia's industry-leading Hopper platform. Customers including Alphabet, Amazon, Meta Platforms, Microsoft, Oracle, and OpenAI were among the first to announce plans to use the new architecture. Nvidia's gains over the last few weeks were even higher. However, the stock pulled back after Bloomberg reported that the U.S. could impose caps on exports of advanced AI chips to some countries in the Middle East. The average 12-month price target for Nvidia reflects an upside potential of nearly 14%, according to LSEG. One analyst thinks the stock could soar another 55% over the next 12 months. Granted, Wall Street's enthusiasm about Nvidia has declined somewhat as its share price has increased. In September, 55 of the 60 analysts surveyed by LSEG rated Nvidia as a "buy" or "strong buy." So far in October, LSEG has surveyed 38 analysts. Twenty-two recommended the stock as a "buy" or "strong buy." Why do so many analysts still expect Nvidia's momentum to continue? The positive sentiment is largely due to Nvidia's continued dominance in the AI chip market. Although Nvidia has rivals, its GPUs remain the gold standard in training and running AI models. Morgan Stanley likes that Nvidia's Blackwell GPUs are sold out for the next 12 months. Analyst Joseph Moore said, "[E]very indication from management is that we are still early in a long term AI investment cycle." The investment firm named Nvidia as a "Top Pick." We'll have to wait and see if Wall Street's target of another 14% gain by Nvidia will materialize over the next 12 months. However, I suspect this price target is overly cautious. Nvidia hasn't reported sales for its Blackwell chips yet. As the numbers begin to come in and keep growing, don't be surprised if multiple analysts issue upward revisions to their price targets for the stock. The AI revolution is only in its early stages, as Morgan Stanley's Moore stated. And Nvidia will almost certainly remain at the center of this revolution for a long time to come.

Up 2,700% in 5 Years, Is Nvidia Stock Still a Buy?

But talk is cheap. And the market is probably waiting for more concrete data before unlocking Nvidia's next bull run. Let's dig deeper. The AI summit Following the launch of OpenAI's ChatGPT in late 2022, there has been no shortage of grandiose projections for the future of generative AI -- a market some analysts at Bloomberg believe could be worth $1.3 trillion in just a decade (up from $40 billion in 2023). Against this backdrop, Nvidia will have difficulty impressing the markets with its own projections. But that isn't stopping the chipmaker from trying to reignite optimism. With the AI market still overwhelmingly geared toward hardware and infrastructure, Nvidia is keen on convincing people that the software it powers can create real-world value. At its investor day, management expanded on several interesting projects, including its NIMs (Nvidia interface microservices) blueprints, designed as a simple way for developers and companies to deploy generative AI in specific use cases like customer service agents or drug discovery. However, the most exciting development could be what Nvidia calls "physical AI," which will involve semiautonomous robots interacting in the real world. According to CEO Jensen Huang, electronics supplier Foxconn, whose parent company is Hon Hai Precision, is already partnering with Nvidia to build and train AI-capable robots. That said, investors may want to wait for more details before getting excited. Because even if a company makes an intelligent robot, there is no guarantee it will generate profits or value for shareholders. The market needs results, not promises With shares up by around 5% since Oct. 7, Nvidia's AI summit reignited some optimism about the future of its chip business. But short-term fluctuations mean little in the grand scheme of things. Zooming out, Nvidia's stock still trades below its all-time high of $136 per share reached on June 18, despite solid operational performance. Second-quarter revenue jumped 122% year over year to $30 billion, driven by growing demand for data center graphics processing units (GPUs) like the h100 and h200. However, with a forward price-to-earnings (P/E) multiple of just 35, Nvidia's valuation is relatively cheap relative to growth, implying the market doubts its ability to maintain current momentum. For context, the Nasdaq-100 has an average forward estimate of 30. But while the average Nasdaq giant built up its business over decades of serving established, profitable sectors of the economy. Nvidia's AI business exploded in just a few years. And promises of a future dominated by AI-robot fleets can't shake the fear that this hype-fueled industry might disappear as quickly as it came. According to research from Rand Corporation, around 80% of AI projects fail, which is twice the failure rate from non-AI-technology-related start-ups. Big tech is still betting on AI While the future of AI tech remains uncertain, Nvidia's business looks likely to maintain its elevated growth rate for the foreseeable future. Large tech companies don't want to be seen as falling behind in a new technology platform, so they are willing to spend billions on Nvidia's hardware, even if they might not get a direct return on investment. Meta Platforms is a great example of this type of demand. On the surface, the social media giant doesn't seem to have a good way to monetize generative AI because its flagship large language model (LLM), Llama, is free and open source for developers. Nevertheless, CEO Mark Zuckerberg expects infrastructure spending to increase in 2025 as the company works to train new versions of Llama to keep up with rival platforms like ChatGPT or Alphabet's Gemini. It is unclear how much longer the AI arms race will last without profitability gains to justify it, so investors might want to hold off on Nvidia stock until more information becomes available.

Analyst revisits Nvidia stock price target as AI market grip tightens

Nvidia shares moved higher in early Monday trading, extending their impressive autumn gains, following a bullish note on the tech giant's near-term outlook from a top Wall Street analyst. Nvidia (NVDA) , which has added around $780 billion in market value since early September, overtook Microsoft (MSFT) as the world's second-most valuable company last week as investors continue to price-in the value of its hammerlock on the global market for AI chips and processors amid a multi-billion investment boom. Its closest rival Advanced Micro Devices (AMD) , in fact, told investors last week that the market for AI accelerators, the chips that power large-language models used by hyperscalers such as Microsoft, Alphabet (GOOGL) and Meta Platforms (META) , could reach $500 billion within three years, a 25% increase from its prior forecast. Last year, the very same market was pegged at around $45 billion. Nvidia's role in the current market ramp and the impact that tech investments are having on the broader economy are equally compelling: Estimates suggest that at the current projected rate, Nvidia will capture around 14% of marketwide capital spending by 2026. Citigroup analyst Atif Malik, who reiterated his $150 price target and 'buy' rating on Nvidia shares in a note published Monday, sees the group capturing a huge share of the billions of spending already committed by U.S. cloud providers. Nvidia: Blackwell output yield improved "Nvidia remains the leader in hyperscaler AI accelerator installed base, holding a 67% share of the aggregate AI accelerator installed base at the 4-largest US hyperscalers (2021-2024E)," Malik and his team wrote. "Nvidia benefits from its chip performance lead, strong scaling capabilities, and large installed base, which supports enterprises with multi-cloud strategies." Malik says Nvidia could see the launch of its new Blackwell platform, as well as its legacy Hopper chips, pushing a 118% gain in GPU sales this year, with a further 84% gain in 2025. That would represent around 31% of all US cloud provider capex this year and around 35% the following year. Related: Analyst revamps Nvidia stock price target after investor meetings "We forecast that both GPUs and ASICs will coexist in the push to build AI/ML infrastructure. ASICs will be used for specialized models and differentiated cloud AI offerings, while GPUs will handle training and inference of larger, more complex models." "Given the continued strong demand for Nvidia products and AMD's upward revision of its AI [total addressable market] to $500 billion by 2028, we now expect a $380 billion AI accelerator [total addressable market] by 2028, with AI GPUs accounting for ~75%." Related: Analysts update outlook for Nvidia's Blackwell chips amid AI boom Nvidia's near-term outlook was also given support from Taiwan Semiconductor, the world's biggest contract chipmaker and a key player in the group's supply chain, when it published third quarter sales figures last week. TSM said sales for the three months ending in September were up 36.5% from last year, and pegged at around $23.3 billion. The group will published a detailed quarterly statement, as well as fresh full-year outlook, later this week. More AI Stocks: Nvidia, for its part, told investors in late August that it saw current-quarter revenue in the region of $32.5 billion despite some delays in the shipment of its new line of Blackwell processors, which stemmed from design changes and supply-chain snarls. Finance chief Colette Kress said Blackwell should generate "several billion" in revenue for Nvidia's fiscal fourth quarter, which ends in January, adding that legacy Hopper sales would accelerate over the second half of the year. Nvidia shares were marked 1.1% higher in premarket trading to indicate an opening bell price of $136.25 each. Related: Veteran fund manager sees world of pain coming for stocks

1 Wall Street Analyst Thinks Nvidia Stock Is Going to $165. Is It a Buy? | The Motley Fool

Nvidia's CEO is looking forward to helping to fill a trillion dollars' worth of data center construction. Nvidia (NVDA 3.13%) stock has had a wild several months. After hitting a new all-time high in June, share prices of the advanced semiconductor chip supplier dropped more than 30%. The stock then surged again, followed by another sharp drop and then a return to a new high-water mark. That volatility is the result of strong sales and earnings growth and high investor expectations, balanced against a high valuation. One Wall Street analyst thinks the bullish investors have it right, and Nvidia stock can move higher by another 25% from its recent level. Melius Research analyst Ben Reitzes thinks investors should buy the stock and sees it worth $165 per share. One big assumption for Reitzes' bullish stance is his belief that Nvidia has built a competitive advantage that will last. In his new research note reported on in Barron's, he wrote, "Nvidia's greatest achievement is creating an infrastructure that works at all the big clouds down to the smallest -- and can be monetized the fastest." That advantage includes a moat created with Nvidia's CUDA software program kit. While the company releases its new, stronger chips like its latest Blackwell GPU (graphics processing unit), the proprietary parallel computing platform allows customers large and small to still make use of previously purchased Hopper series chips to accelerate the overall development of their artificial intelligence (AI) needs. That makes Nvidia sticky to customers. They can continue to increase compute power for AI training while still getting returns from investments in earlier GPU products. And there is still plenty of spending for AI growth. In a recent podcast interview, Nvidia CEO Jensen Huang stated: The entire computing technology stack is being reinvented. We have a trillion dollars' worth of data centers that we have to modernize. Nvidia has a hook in for much of that capital spending. It's the thrust of why Reitzes thinks the stock still has plenty of room to run. And it's a case that investors should buy into.

Nvidia stock rises to new record, exceeding June high as AI trade is rekindled

The new high bested a previous record of $140.76, which was set on June 20. Shares were trading at about $139.59 as of 10.26 a.m. ET. Nvidia's intraday record comes after Taiwan Semiconductor Manufacturing Company, the world's largest chip producer, beat third-quarter earnings estimates and posted a 54% increase in profit. The company produces chips for companies like Apple, Nvidia, AMD and ARM. Nvidia stock hit a closing high of $138.07 earlier in the week, topping its prior record of $135.58 set on June 18. Shares are up 180% year-to-date and have increased more than nine-fold since the beginning of 2023. Companies including Microsoft, Meta, Google and Amazon are purchasing Nvidia GPUs in massive quantities to build increasingly large clusters of computers for their advanced AI work. Those companies are all slated to report quarterly results by the end of October. Nvidia recently said demand for its next-generation AI GPU called Blackwell is "insane" and it expects billions of dollars in revenue from the new product in the fourth quarter.

Where Will Artificial Intelligence (AI) Leader Nvidia Be in 5 Years? | The Motley Fool

Nvidia stock is up nearly 2,800% over the last five years, but can the company keep posting those gains? Chip and data center specialist Nvidia (NVDA -0.01%) has emerged as the king of the artificial intelligence (AI) realm. Quarter after quarter, the company continues to defy expectations, set revenue and profit records, and provide investors with a laundry list of such good news that it's hard to keep track of it all. If you've held Nvidia stock at any point during the last two years, congratulations. You've probably made a lot of money. But as I often express in my pieces, investors need to think long term. Can Nvidia's rocket ship keep climbing higher? Below, I'll outline catalysts and risk factors facing Nvidia. Moreover, I'll detail how I think these points can impact the stock and assess how Nvidia shares may hold up over the next five years. One of Nvidia's best-selling products at the moment is its H100 graphics processing unit (GPU). Meta Platforms CEO Mark Zuckerberg and Tesla CEO Elon Musk have both specifically referenced the importance of the H100 technology for their respective businesses' generative AI development. Yet, despite the unrelenting demand for the H100, Nvidia is already on the brink of a successor chipset. The company's new Blackwell GPUs are set to launch later this year, and both Wall Street and Nvidia's own management are forecasting billions of additional dollars in sales by the end of the year. Furthermore, continued heavy spending on capital expenditures (capex) from the likes of Meta, Tesla, Microsoft, Amazon, and Alphabet should serve as a nice tailwind for Nvidia's compute and networking business. With all that in mind, Nvidia stock could be poised to see further gains over the next couple of years once Blackwell really hits its stride. One important detail to call out regarding more capex spending from big tech is that not all of this will be allocated toward Nvidia's products. Rather, each of the "Magnificent Seven" members highlighted above is working on their own in-house custom chip designs. In other words, Nvidia's own customers are looking to compete with the company and move away from a sweeping overreliance on its IT infrastructure. Such a dynamic will likely be a headwind for Nvidia in terms of its pricing power. I suspect lower prices for Nvidia's GPUs will begin eating away at its revenue growth and gross profit margins. As revenue growth begins to normalize and margins start to shrink, Nvidia's profitability profile will tighten. As a result, rising competition could be the catalyst that ultimately leads to a plateau across Nvidia's entire business. For these reasons, I think the stock has a good chance of selling off in the long run. I'd like to make one thing abundantly clear: Nvidia stock likely has a solid runway ahead. However, as I've expressed before, I think timing will become a more important factor when assessing whether or not to buy or sell Nvidia shares. In other words, I do not think Nvidia stock will gain another 2,800% over the next five years. While the stock will go up at times, it's highly unlikely that shares will soar upwards in a straight line and experience minimal sell-offs. Candidly, I think these dynamics have been at the center of Nvidia's selling activity from several high-profile billionaires lately. Will Blackwell and whatever else Nvidia releases over the next five years be successful products? Probably. But will they be so successful that Nvidia will remain the king of the AI realm, with the rest of the tech world lucky just to get their hands on the company's products? In my opinion, I don't think that will be the case. For these reasons, I think Nvidia's valuation will normalize over the next five years, and the stock may very well underperform its peers and the technology sector at large. I think there are more compelling opportunities in the chip industry and AI space more broadly. I would think long and hard before doubling down on a position in Nvidia over the next several years.

Nvidia Stock Hits Another Record High as AI Chip Excitement Returns

Shares of Nvidia (NVDA) set a fresh record intraday high Thursday as a blowout earnings report from supplier Taiwan Semiconductor Manufacturing Co. (TSM) eased concerns that the semiconductor market was stalling. TSMC posted a 54% year-over-year jump in profit and a 39% rise in revenue in the third quarter on artificial intelligence (AI) chip sales, and the company predicted demand would continue into the future. That offset news earlier this week from Dutch semiconductor maker ASML Holding (ASML), which warned that the recovery in non-AI chips was taking longer than anticipated. Adding to the positive feelings about Nvidia were comments from billionaire investor Stanley Druckenmiller about his sale of the company's shares. The Duquesne Family Office CEO said in an interview with Bloomberg Television that "it was a big mistake" to dump all his stake, adding, "I'm licking my wounds from a bad sale there." Nvidia shares were recently up 2.7% to $139.39 after earlier Thursday touching a record $140.89. They have nearly tripled since the beginning of 2024.

1 Stock-Split Artificial Intelligence (AI) Stock Up 2,890% in 5 Years to Buy Now, According to Wall Street | The Motley Fool

Nvidia (NVDA 1.63%) was the best-performing stock in the S&P 500 (SNPINDEX: ^GSPC) over the last five years, with shares soaring 2,890%. The company completed two stock splits during that period. The first was the 4-for-1 stock split in July 2021, and the second was the 10-for-1 stock split in June 2024. Monster gains notwithstanding, Wall Street is still bullish on the semiconductor company. Of the 65 analysts who follow Nvidia, 92% give the stock a buy rating and the remaining 8% give the stock a hold rating. Moreover, Nvidia's median price target of $150 per share implies 14% upside from its current share price of $132. Here's what investors should know about this artificial intelligence stock. Nvidia designs the most coveted graphics processing units (GPUs) in the computing industry. GPUs perform technical calculations faster and more efficiently than central processing units (CPUs), which lets them speed up complex workloads like artificial intelligence (AI). Nvidia has more than 80% market share in data center AI processors, and its leadership is rooted in CUDA. Nvidia introduced its CUDA programming model in 2006. It turned GPUs (originally designed for computer graphics) into general-purpose chips capable of accelerating all sorts of applications. The CUDA ecosystem now includes hundreds of software libraries that streamline development workflows across a range of disciplines, from data analytics and machine learning to scientific simulation and computational chemistry. No other chipmaker offers comparable developer tools, so Nvidia GPUs have become the gold standard. "Year after year, Nvidia responded to the needs of software developers by pumping out specialized libraries of code, allowing a huge array of tasks to be performed on its GPUs at speeds that were impossible with conventional, general-purpose processors like those made by Intel and AMD," according to The Wall Street Journal. More recently, Nvidia has pushed further into software and services with AI Foundry and AI Enterprise. The former lets businesses customize pre-trained large language models on Nvidia supercomputing infrastructure, and the latter simplifies AI application development across use cases like content generation, robotics, and predictive analytics. "Nvidia software will exit the year at a $2 billion run rate," CEO Jensen Huang recently told analysts. Finally, Nvidia has further reinforced its leadership and augmented its ability to monetize AI by expanding into new data center hardware verticals. "We literally build the entire data center, and we can monitor everything, measure everything, and optimize across everything," explained Huang. Importantly, Nvidia has secured a leadership position in generative AI networking gear, and demand for its first data center server CPU (Grace) is very strong among supercomputing clients. Here's the bottom line: Nvidia is more than a chipmaker. It's a full-stack accelerated computing company with products that span hardware, software, and services. The breadth of its portfolio, coupled with the best-in-class performance of its GPUs, affords Nvidia a competitive moat that rival chipmakers will find it difficult to overcome. Nvidia reported second-quarter financial results that beat expectations. Revenue soared 122% to $30 billion driven by particularly strong growth in the data center segment, and non-GAAP earnings increased 152% to $0.68 per diluted share. "Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI," said Huang. The chart below shows Nvidia's revenue growth across its four primary business segments. Data source: Nvidia. Note: Q2 2025 ended July 2024. In the near term, Nvidia has a major catalyst in the upcoming launch of its Blackwell GPU. The next-generation chip can handle AI training and inference tasks four times faster and 30 times faster, respectively, compared to the previous Hopper architecture. The Blackwell production ramp will begin in the fourth quarter of fiscal 2025 (ending January 2025). CEO Jensen Huang says it will likely be the most successful product in the history of the computing industry. Looking further ahead, Grand View Research says AI accelerator sales will increase at 29% annually through 2030, while spending across AI hardware, software, and services increases at 36% annually during the same period. Nvidia is one of the companies best positioned to benefit. Indeed, Angelo Zino at CFRA says Nvidia "will be the most important company to our civilization over the next decade as the world becomes more AI-driven." Wall Street estimates Nvidia's earnings will grow at 37% annually over the next three years. That consensus makes the current valuation of 62 times earnings look reasonable. Those figures give Nvidia a PEG ratio of 1.7, a discount to the three-year average of 3.1. Patient investors can confidently buy a small position in Nvidia today, and they should plan to add a few more shares if the stock suffers a pullback of 10% or more.

Should You Buy or Sell Nvidia Stock? | The Motley Fool

After the chipmaker's massive run-up over the past two years, what's the right move for investors now? Nvidia (NVDA -0.01%) has been one of the best-performing stocks on the market over the past two years, and the catalysts that drove it higher are still present. But after its strong run-up, is Nvidia stock still a smart buy at its current level, or would those who hold shares be advised to sell and take some profits? There are valid arguments for both views. Nvidia's rise has been directly tied to the artificial intelligence (AI) arms race. Its primary products are graphics processing units (GPUs) -- parallel processors that excel at handling large and complex computing tasks that are easily broken down into many smaller ones that can be handled independently and simultaneously. Connect GPUs in clusters and you end up with a computing platform that can process certain types of incredibly complex workloads at blistering speeds -- and these are just the sorts of workloads that AI systems create. As AI companies and cloud computing providers rushed to get in front of the emerging demand for processing power, Nvidia's sales went through the roof. In the past couple of years, quarterly revenues have often tripled on a year-over-year basis. However, its stellar growth is starting to slow slightly due to tougher annualized comparisons. This growth slowdown makes sense, but the bigger question is, can Nvidia maintain its overall sales at these levels? Because companies are buying these GPUs to rapidly build their AI computing capacity, there is going to be a time when the demand will be satisfied. At that point, Nvidia's sales may crater, as companies will only be buying replacement GPUs or making gradual capacity increases. This could be a huge problem for Nvidia, as its revenue levels in its latest quarters are far above where they have been in the past. This also highlights the cyclical nature of the chip business. Nvidia has gone through multiple boom-and-bust cycles in its life as a company. If AI-related demand wanes, investors could be in a rough spot. But has Nvidia built up enough of a sales base to compensate for that cyclicality? GPUs don't last forever. They generally need to be replaced after about three to five years, which means that if the companies that have been building out their computing infrastructure recently want to maintain that processing power over the long term, they will have to regularly fork out massive chunks of money on new hardware. We're two years into the AI build-out already, and many companies are still scaling up their AI computing power, so 2025 will be another year of strong demand. That gets investors to 2026, at which point the natural replacement cycle starts for the GPUs that were purchased at the start of the generative AI era. But there could also be more reasons for companies to upgrade. First, the semiconductor chips within these Nvidia GPUs are produced by Taiwan Semiconductor Manufacturing (TSM 2.71%). Taiwan Semi is always innovating on the process node front, allowing chip designers like Nvidia to create denser, higher-performance chips. TSMC expects that its chips built using its next-generation N2 process node will be 25% to 30% more power efficient than prior-generation chips when configured at the same speeds. Energy costs are a huge operating expense for server farms, so some customers may choose to upgrade for that reason, regardless of whether they need more computing power or not. The N2 manufacturing lines aren't expected to start production until 2025, which likely means Nvidia GPUs built on them won't make their way to its customers in quantity until 2026. Meanwhile, Nvidia is just launching its Blackwell architecture GPUs, which will replace the Hopper architecture upon which it has built its current top-of-the-line chips, and the improvements are astounding. Blackwell's architecture is four times faster than Hopper's, allowing AI companies to create more complex models faster. The combination of all these factors points to demand remaining strong well past 2026. In other words, the market probably isn't peaking any time soon. This is key, as Nvidia's forward price-to-earnings ratio has already reached levels that are starting to look reasonable, at least relative to how fast it's growing. Trading at 45 times forward earnings, Nvidia stock is far from cheap, but it's putting up strong growth, so this valuation is acceptable. Investors' decisions about whether to buy or sell Nvidia stock today should be based on how they expect the company's business to be faring in 2026 and beyond. There are enough catalysts out there that Nvidia's growth should last far beyond 2026, and with the upgrade cycle, it should be able to maintain its newfound revenue levels.

Should You Buy Nvidia Stock Before Oct. 17? | The Motley Fool

The artificial intelligence (AI) chipmaker could get a boost from a supplier in the space. There's no denying the growing chorus of experts suggesting that artificial intelligence (AI) will change just about everything. Some veteran analysts and tech aficionados have gone so far as to suggest we're in the throes of the fourth industrial revolution. These sophisticated algorithms have the potential to dramatically increase productivity by automating time-consuming processes and streamlining a great many tasks. There are plenty of companies that have profited from the accelerating adoption of AI, but arguably none more than Nvidia (NVDA 2.43%). The company pioneered the graphics processing units (GPUs) that provide the computational horsepower that makes AI possible. Simply put, these computer chips can conduct lightning-fast mathematical calculations, which enables the creation and running of complex AI models. There have been any number of catalysts that sent the chipmaker higher, and this Thursday could mark yet another. Let's look at what's coming down the pike and whether it could signal (another) big move for Nvidia stock. Taiwan Semiconductor Manufacturing (TSM 0.73%), commonly referred to as TSMC, is the world's largest contract semiconductor foundry and is responsible for the vast majority of AI chips, producing an estimated 90% of the world's most advanced processors. Nvidia ranks among TSMC's biggest customers, accounting for about 11% of the company's sales in 2023 -- though that number is likely higher now. As such, TSMC's performance will likely be a canary in the coal mine, providing insight into the trajectory of Nvidia's results. TSMC is scheduled to release its third-quarter financial report on Thursday, and the available evidence suggests the results will be robust. The company provides a monthly revenue report, so we already have a pretty fair idea of how things are going. For the three months ended Sept. 30, the company generated revenue of NT$759.7 million (roughly $23.6 million), which represents growth of roughly 39% year over year, based on current exchange rates. For context, that's slightly ahead of analysts' consensus estimates of $23.09 billion, or growth of about 35%. It's also ahead of TSMC's own forecast, which called for $22.8 billion at the midpoint of its guidance. The fact that TSMC will likely surpass the high end of its own guidance suggests the demand for chips that process AI remains robust -- which bodes well for Nvidia. There's more. Nvidia CEO Jensen Huang has been making the rounds on financial media, providing updates regarding the company's next-generation Blackwell architecture. "Blackwell is in full production, Blackwell is as planned, and demand for Blackwell is insane," the chief executive said in a recent interview. Analysts from Morgan Stanley are projecting that Nvidia will generate $10 billion from Blackwell chips during the company's fiscal 2025 fourth quarter, which ends in late January. The available evidence suggests that demand for AI remains robust, and depending on what TSMC executives have to say on Thursday, it could potentially act as a catalyst for Nvidia -- but should investors buy the stock before Oct. 17? Truth be told, it really doesn't matter much if you buy Nvidia stock before or after TSMC reports. The stock closed at a new record high on Monday, pushing Nvidia's market cap to $3.4 trillion, bringing its gains over the past year to more than 200% (as of this writing). Taking a step back, the stock is up 32,770% over the past decade, which helps illustrate the benefit of buying quality stocks and holding them for the long term. To be clear, Nvidia already has plenty of growth built in. The stock is currently trading for 65 times earnings, which is enough to send some investors running for the exits. However, analysts' consensus estimates are calling for earnings per share of $4.04 in Nvidia's fiscal 2026, which kicks off in January. That works out to a forward multiple of 34, which suggests the valuation isn't as egregious as it first appears. Furthermore, most experts believe it's still early days for the adoption of AI. The market value of generative AI is expected to be between $2.6 trillion and $4.4 trillion annually over the next few years. As new applications emerge and the technology advances, those estimates could well be conservative. Given the company's pivotal position in the AI revolution and its robust growth prospects, it doesn't matter if you buy Nvidia stock before or after Oct. 17 -- as long as you buy it.

Is It Too Late to Buy Nvidia Stock? Evidence Is Piling Up That Provides a Compelling Answer.

Nvidia's volatility has been unnerving for some investors in recent months, but the available evidence is painting a clear picture. There are no two ways about it: The dawn of the artificial intelligence (AI) revolution in early 2023 has been a windfall for chipmaker Nvidia (NVDA 1.63%). The company pioneered the graphics processing units (GPUs) that have become the gold standard for a variety of use cases by providing the computational horsepower needed to underpin video games, data centers, and even earlier versions of AI. Generative AI went viral early last year, with Nvidia at the heart of what many are calling the next industrial revolution. The results have been striking: Nvidia stock is up more than 800% since the start of 2023 and hovers less than 2% off its all-time high (as of this writing) -- but it's been a bumpy ride. Nvidia stock lost as much as 27% during the four weeks starting in early July but has rebounded vigorously, gaining nearly all that back over the past month. Causing the recent decline were fears that demand for AI could dwindle, and a great deal of future growth was already baked into the stock price. That said, there's mounting evidence that answers the question: Is it too late to buy Nvidia stock? Faltering demand, or the calm before the storm? What distinguishes generative AI from its predecessors is the need for not only massive amounts of data, but also the corresponding computational horsepower needed to parse the data. When it comes to AI-centric processors, Nvidia is without equal, controlling an estimated 98% of the market in 2023, similar to its share in 2022, according to semiconductor analyst company TechInsights. This dominance put Nvidia in pole position when generative AI burst on the scene. The unprecedented demand fueled triple-digit revenue and profit growth for Nvidia for five successive quarters. So, when the company forecast only 79% growth for its fiscal 2025 third quarter (which ends in late October), some investors saw the writing on the wall. They concluded that demand was ebbing and they headed for the exits, but that move was likely premature -- and costly. The evidence is growing that demand for AI continues unabated. Super Micro Computer, commonly called Supermicro, provided one piece to the demand puzzle on Monday. In a press release, the company revealed that it had delivered more than 2,000 direct liquid-cooling (DLC) rack systems since June and was currently shipping more than 100,000 GPUs per quarter. Shipments of that magnitude suggest that demand for Nvidia's GPUs remains robust. Nvidia CEO Jensen Huang provided some boots-on-the-ground commentary as well. In an interview late last week, the chief executive said that demand for Blackwell -- the company's next-generation AI platform -- is "insane." He called this the "first wave of AI," which started with the modernization of $1 trillion worth of existing data centers, upgrading them with chips capable of processing generative AI. Huang went on to say that the next phase -- the "biggest wave of AI" -- will involve "companies using AI to be more productive." These comments suggest that the AI boom has only just begun. Furthermore, Nvidia recently expanded its partnership with global IT consultancy company Accenture to help enterprise companies "rapidly scale their AI adoption." To that end, Accenture launched the new Accenture Nvidia Business Group, which will be staffed by 30,000 business professionals to help customers with "process reinvention, AI-powered simulation, and sovereign AI." Accenture noted in the press release that generative AI drove $3 billion in bookings in its recently completed fiscal year and shows no signs of slowing. Finally, data provided on Wednesday by Taiwan Semiconductor Manufacturing, commonly called TSMC, left no question about the ongoing demand for AI. The company released its September Revenue Report, which reported quarterly revenue of 759.7 billion New Taiwan dollars ($24.6 billion), increasing 39% year over year and coasting past Wall Street's consensus estimate of NT$748. Nvidia is one of TSMC's largest customers, accounting for roughly 11% of sales last year. This suggests that AI-related demand remains strong for Nvidia as well. The evidence is clear Nvidia investors have been on a non-stop thrill ride since early last year. The company's fiscal 2025 second-quarter results help illustrate its success. For the fiscal 2025 second quarter (ended July 28), Nvidia delivered record revenue that grew 122% year over year to $30 billion, fueled by record data center revenue of $26.3 billion, up 154%. Profits also soared as diluted earnings per share (EPS) of $0.67 surged 168%. Nvidia won't report its fiscal third-quarter results until late November, so we won't know for sure until then. However, if the latest developments are any indication, Nvidia should have another strong showing in the works. The company's forecast is calling for revenue of $32.5 billion, which would represent year-over-year growth of 79%, with a corresponding increase in profitability. While that's slower than the triple-digit growth investors had become accustomed to, it's remarkable nonetheless. Then there's the matter of Nvidia's valuation. At 62 times earnings, it certainly appears expensive -- at least at first glance. However, Wall Street is forecasting EPS of $4.02 for Nvidia's fiscal year that begins in January. That works out a forward price-to-earnings (P/E) ratio of 33, which is only slightly higher than the multiple of 30 for the S&P 500. For me, the evidence is clear: Nvidia stock is still a buy.

Nvidia Stock Price Analysis on 15th Oct

Investor Focus on AI: Nvidia has been a leader in developing AI-focused technology, particularly GPUs that are critical for machine learning and data processing. The company's leadership in AI chip development has positioned it as a key player in the future of AI and data centers, keeping investors optimistic despite recent volatility. October 15 saw a decline in major technology stocks, contributing to Nvidia's fall. The market's attention remains on corporate earnings and macroeconomic data, with investors eagerly awaiting signals from the Federal Reserve on potential interest rate cuts. The yield on 10-year Treasurys stood at 4.03%, down from its previous close of 4.07%, but rising bond yields have been a concern for tech stocks as higher rates tend to decrease the attractiveness of growth-oriented stocks like Nvidia. While Nvidia has strong fundamentals, driven by its leadership in AI and chips, the current market conditions are challenging, as evidenced by the selloff across the semiconductor industry. Investors are closely monitoring Nvidia's next moves, particularly as AI technology continues to drive demand for its products. Nvidia's stock performance on October 15, 2024, reflects broader industry and market challenges, as the tech sector, particularly semiconductors, faced notable declines. Despite the 4.69% drop, Nvidia remains a key player in the semiconductor and AI markets, and its long-term outlook remains positive due to its strategic positioning in AI technology and GPUs. However, near-term volatility may continue as investors react to broader economic data and earnings reports in the semiconductor industry. The future of Nvidia's stock price will largely depend on macroeconomic trends, the company's ability to maintain its leadership in AI, and the overall performance of the technology sector.

NVIDIA taps all-time high as TSMC says AI demand is 'real' and has legs By Investing.com

Investing.com - AI giant NVIDIA (NASDAQ:NVDA) tapped a new all-time of $140.89 in intra-day trading Thursday following solid results from contract chipmaker Taiwan Semiconductor Manufacturing (NYSE:TSM), which counts NVIDIA as one of its largest customers. TSMC reported that third-quarter revenue increased 39.0% year-over-year, while net income and diluted EPS both increased 54.2%. The company cited strong smartphone and AI-related demand. On its call, while not directly discussing NVIDIA, TSMC's CEO C.C. Wei said, "[w]e continue to observe extremely robust AI related demand from our customers throughout the second half of 2024, leading to increasing overall capacity utilization rate for our leading 3 nanometer and 5 nanometer process technologies." They now forecast the revenue contribution from server AI processors to more than triple this year, and account for mid-teens percentage of our total revenue in 2024. As a result, TSMC now forecasts that its full-year revenue will increase by close to 30% in US dollar terms. When asked if the AI demand is real and sustainable, Wei said it is "real." "And why I say it's real? Because we have our real experience. We have used the AI and machine learning in our fab, in R&D operations. By using AI, we are able to create more value by driving greater productivity, efficiency, speed, qualities," Wei added. As an example, the CEO highlighted that a productivity gain of just 1% would amount to $1 billion to TSMC. "And think about it, let me use 1% productivity gain," Wei said answering a question about AI demand being sustainable. "That was almost equal to about $1 billion to TSMC. And this is a tangible ROI benefit. And I believe we are -- we cannot be the only one company that have benefited from this AI application. So I believe a lot of companies right now are using AI and for their own improving productivity, efficiency, and everything. So I think it's real. Did I answer your question?" Shares of NVIDIA are up 2.3% intra-day and are now up 179% year-to-date.

The S&P 500 once again briefly rode Nvidia's coattails to all-time highs

Nvidia 's rally to a record intraday high on Thursday briefly helped lift the S & P 500 into uncharted waters, leaving investors to wonder what's next for the artificial intelligence trade. At one point, shares of the chipmaker climbed as much as 3.8% in Thursday's session and at times traded above $140. That marked the first new intraday high for the megacap technology giant since June. Nvidia appeared to benefit from enthusiasm surrounding Taiwan Semiconductor , which jumped almost 10% after topping Wall Street's third-quarter earnings estimates. The S & P 500 broad market index also touched a record high during the day, mostly driven by strong semiconductor and financial stocks. Nvidia's stock, which scored an all-time closing high on Monday, has added 1.6% so far this week. The latest run in Jensen Huang's company highlighted a return to bullish sentiment after concerns that the AI stocks had run up too far, too fast earlier this year. Notably, Nvidia shares slid in April and July as investors questioned, in the words of Globalt Investments' Tom Martin, if AI had too much "hype" around it. "People were like, 'Well, you can't grow to the sky, so let's be a little bit more cautious in our positioning,'" said Martin, a senior portfolio manager at the firm. Now, AI-focused companies are saying "the demand is out there -- and it's going to last for a while." NVDA 1D mountain Nvidia, 1-day chart Martin likes the AI trade looking ahead, especially as year-end -- typically a strong time for the market -- nears. He said Nvidia specifically has fundamental catalysts for the share price to keep advancing given the demand for its products, but investors shouldn't expect a seamless move. More broadly, he said AI spending can keep the global economy chugging along as other areas, from China to automobile sales, show signs of slackening. "We want to be in the stock. We want to be, for the most part, overweight in it," Martin said of Nvidia. But, "it's going to be a bumpy ride, because investors will say, 'Oh, it's too expensive.' And then they'll try and take some profits, and then they'll try and buy it back a little cheaper, and then it'll go back up again."

Nvidia Stock Surges As AI Dominance Fuels Long-Term Bull Run: Gene Munster Waves Green Flag - NVIDIA (NASDAQ:NVDA)

Munster believes Nvidia has a long runway ahead as the AI revolution accelerates, making it a stock to hold for the long term. Nvidia Corp NVDA has been on a rocket ride this year, with the stock up a jaw-dropping 179.86% year-to-date and 187.99% over the past year. But if Gene Munster is to be believed, Nvidia is only getting started. In the midst of Tesla's highly anticipated Robotaxi event, Munster had a sleeper takeaway: "Nvidia's got a long way to run." And with a 15.31% surge in the past month, the AI chip giant is showing no signs of slowing down. The AI Chip King Has More Room To Run Gene Munster, co-founder of Deepwater Asset Management, has long been bullish on Nvidia, and he's not changing his tune. In a recent post on X (formerly Twitter), he noted the absence of Tesla's much-talked-about "affordable vehicle" from the event, but his enthusiasm for Nvidia was loud and clear. Munster believes Nvidia's dominance in AI chips positions it for a multi-year bull run, especially as artificial intelligence becomes an even more integral part of the tech landscape. Munster isn't the only one singing Nvidia's praises. The stock's technical indicators are flashing strong bullish signals across the board: Chart created using Benzinga Pro Nvidia stock is currently trading at $134.26, above its five, 20 and 50-day exponential moving averages, showing strong bullish momentum. The eight-day simple moving average sits at $128.62, while the 20-day SMA is $122.65 -- both indicating a bullish signal. Even the longer-term 50-day simple moving average of $118.29 suggests Nvidia stock momentum is strongly bullish. Chart created using Benzinga Pro Nvidia stock's Moving Average Convergence/Divergence (MACD) is 4.26, another sign that the stock is positioned for further gains. While some may point to Nvidia's Relative Strength Index (RSI) of 66.43, suggesting the stock is approaching overbought territory, the Bollinger Bands continue to indicate buying pressure. Read Also: AMD Stock: Can Its AI Strategy Compete With Nvidia? Analyst Predicts Market Share Gains Ahead AI Is The Game-Changer Nvidia's dominance in AI chips is the real story here. The company has become the go-to provider of the computational power needed to fuel the AI revolution, and Munster believes the AI wave is far from cresting. With companies across industries racing to integrate AI into their operations, Nvidia is well-positioned to benefit from this monumental shift in technology. Munster emphasized that it's still the "time to own" Nvidia stock as the AI boom is just starting to unfold. What's Next For Nvidia Stock? With Nvidia's stock price riding high and technical indicators signaling continued upward momentum, Nvidia remains a favorite among investors betting on the AI revolution. Munster's long-term view aligns with the bullish sentiment surrounding the company -- Nvidia is poised to continue leading the AI chip market, making it a prime stock to watch in the coming years. Read Next: Nvidia, Samsara And More On CNBC's 'Final Trades' Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Should You Buy Nvidia Stock Before the Blackwell Launch? 1 Incredibly Important Detail May Give You the Answer. | The Motley Fool

One of the most important pieces of generative artificial intelligence (AI) development is sophisticated chipsets called graphics processing units (GPUs). Right now, Nvidia (NVDA 1.63%) absolutely dominates the GPU realm thanks to its A100 and H100 chipsets. While these products contributed to record revenue and profit growth for Nvidia over the last couple of years, the company's new Blackwell series GPUs could wind up being its biggest product yet. With Blackwell set to launch later this year, is now a good time to buy Nvidia stock? Below, I'll reveal one clue that could help in making your decision. CEOs are more than just executives who sit atop the organizational structure. They are often masters at marketing, and Nvidia CEO Jensen Huang is no exception. During a recent interview on CNBC, Huang said that demand for Blackwell is "insane" and that "everybody wants to have the most and everybody wants to be first." All things considered, early signs indicate that Nvidia will have no problem selling its Blackwell GPUs. But with so much potential on the horizon, I just can't help but fixate on one peculiar statistic. The term "insider" is applied to people such as members of a company's board of directors or senior executives. Entities or investors owning over 10% of the company are also considered insiders. Many of Nvidia's insiders have been selling the stock throughout 2024. Granted, much of the activity stems from terms of automatic sales protocols agreed upon in the past. However, there's one thing surrounding Nvidia's insider activity that I can't seem to get over. According to public records, the last time an insider at Nvidia bought stock was back in December 2020, when the company's chief financial officer, Colette Kress, bought 200 shares on the open market. I fully understand that rules set forth by the Securities and Exchange Commission (SEC) pertaining to insider buying and selling are stringent. Right now, it's highly likely that Nvidia's insiders know a lot of details surrounding Blackwell that are not yet public. This could include production volumes, purchase orders, backlog trends, and more. For this reason, it would look a little nefarious if an insider made a massive purchase of the stock as the Blackwell launch looms. However, let's zoom out and think about the bigger idea here. The prospects of AI have been the primary pillar of Nvidia's bull thesis for a couple of years now. Moreover, developing a successor product to the H100 was not an overnight project. Considering those points, insiders had the opportunity to scoop up shares in anticipation that Nvidia's research and development (R&D) investments would bear fruit at some point down the road. Looked at from another perspective, insiders may be cashing out because they think Nvidia's share price is unlikely to be an outsize multibagger again over the next couple or even several years. When you layer on top that big-name hedge funds run by Ken Griffin, David Shaw, and David Tepper have also been offloading Nvidia stock, I'm hard-pressed to see a reason to buy shares at the moment. I believe Blackwell will serve as a near-term catalyst for Nvidia's growth. After the launch, I'd keep a keen eye out to see whether insiders continue selling or if someone finally buys shares after so many years without doing so. Should that happen, it could signal that insiders think Nvidia stock is attractively valued and has significant upside. At the end of the day, I am sort of thinking that Blackwell will ignite some short-lived pops in Nvidia stock, making it a lucrative trading opportunity. But as a long-term investor, I'd encourage shying away from trading or buying into momentum and instead seeking steady, gradual winners that can last several years.

Nvidia Stock Is Pulling Back. Is It a Good Chance to Buy? | The Motley Fool

Nvidia stock just approached its all-time high, but now it's erased all of last week's gains. Just as Nvidia (NVDA -4.33%) shares approached the all-time high set in June, the stock has begun to reverse course today. Shares were down as much as almost 7% as of about 10:40 a.m. ET Tuesday, with several recent news items apparently scaring investors. One thing that likely spooked some shareholders was reports that the Biden administration was discussing capping sales of advanced artificial intelligence (AI) chips supplied by Nvidia and other U.S. companies to some countries. At the same time, semiconductor equipment maker ASML warned investors of weaker China sales expected over the next year. But reading deeper into each of these news items and looking at what Nvidia offers customers should have investors wondering whether today's pullback is, in fact, a good opportunity to buy Nvidia stock. Astute investors know that Nvidia has faced headwinds in the past. Export restrictions to China, slumping demand in the cryptocurrency mining sector, production delays, and increased competition have all affected its business. But even with that competition, Nvidia CEO Jensen Huang said demand for its newest, next-generation Blackwell AI chip is "insane." Nvidia's first-mover status is just one reason customers keep placing orders for its new AI chips. Another important factor is how Nvidia has designed its entire AI platform. Nvidia's architecture is based on its CUDA software kit. CUDA, or Compute Unified Device Architecture, is a parallel computing platform and application programming interface the company developed. CUDA enables systems to ingest AI data to accelerate the training of more AI data. Huang recently described it as a flywheel effect. It allows older versions of its chips to maintain usefulness as the newer, more powerful chips are used to help large language models build AI inference data. That is to say, Nvidia has a competitive moat that can help continue to push growth in revenue and earnings. That makes today's pullback a good chance for investors to either start or add to positions in the stock.

Citi reaffirm Buy rating on NVIDIA stock, sees strong GPU growth By Investing.com

On Monday, Citi reaffirmed its confidence in NVIDIA (NASDAQ:NVDA), maintaining a Buy rating and a $150.00 price target for the stock. The firm's analysis suggests a bright future for NVIDIA's GPU sales, anticipating significant year-over-year growth in both 2024 and 2025. NVIDIA's GPUs are expected to play a critical role in the development of artificial intelligence (AI) and machine learning (ML) infrastructure, complementing the use of custom Application-Specific Integrated Circuits (ASICs). According to Citi's projections, NVIDIA's GPU compute sales could surge by 118% in 2024 and 84% in 2025. Sales to hyperscalers are also forecasted to increase by 100% in 2024 and 67% in 2025. This growth is expected to account for 31% of U.S. cloud provider capital expenditures in 2024, marking a 9% increase over 2023, and is anticipated to rise to 35% by 2025. On the other hand, custom ASICs are also predicted to grow, representing 8% of U.S. cloud provider capex in 2024, with sales ramping up by more than 200% before stabilizing to a 16% year-over-year growth in 2025. The demand for NVIDIA's products remains robust, as evidenced by various AI accelerator projects and AMD (NASDAQ:AMD)'s revised AI Total Addressable Market (TAM) estimate, which increased from $400 billion to $500 billion by 2028. Citi now expects the AI accelerator TAM to reach $380 billion by 2028, with AI GPUs comprising approximately 75% of this market. NVIDIA is regarded as a dominant force among hyperscalers, holding an estimated 67% share of the four largest U.S. hyperscalers' AI accelerator installed base from 2021 to 2024, which amounts to roughly 6.3 million units. Citi attributes NVIDIA's market leadership to three main advantages: a performance lead at the chip level, superior scaling capabilities, and a large installed base across major cloud providers. This widespread presence is crucial for enterprises employing multi-cloud strategies, as it ensures the necessary interoperability across different cloud infrastructures. In other recent news, Citi reaffirmed their Buy rating on NVIDIA Corporation (NASDAQ:NVDA), anticipating strong year-over-year growth in cloud data center capital expenditures. They also highlighted NVIDIA's strategic advantage as the industry moves towards system-level scaling. NVIDIA's strong market position, as highlighted in Citi's analysis, is further supported by recent data from InvestingPro. The company's financial metrics underscore its impressive growth trajectory and market dominance in the AI and GPU space. InvestingPro data reveals that NVIDIA's revenue growth has been nothing short of extraordinary, with a 194.69% increase over the last twelve months as of Q2 2025. This aligns perfectly with Citi's projections of substantial GPU sales growth in the coming years. The company's gross profit margin stands at a robust 75.98%, reflecting its ability to maintain high profitability despite rapid expansion. An InvestingPro Tip indicates that NVIDIA has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. This score supports Citi's confidence in the company's future performance and its ability to capitalize on the growing AI accelerator market. Another relevant InvestingPro Tip notes that NVIDIA is a prominent player in the Semiconductors & Semiconductor Equipment industry, which reinforces its position as a leader in GPU technology for AI and ML applications. For investors seeking a deeper understanding of NVIDIA's potential, InvestingPro offers 20 additional tips that could provide valuable insights into the company's future prospects.