Investors are going to pay close attention to Nvidia’s quarterly earnings report on November 20, 2024. This is especially true after CEO Jensen Huang talked about the company’s new Blackwell AI chips. People who follow the market are optimistic after Huang said that demand for these chips is “insane,” which could mean that Nvidia will make a lot more money. These Blackwell chips, which are based on the GB200 GPU design, are much faster than the old H100 systems—up to 30 times faster. With this big step forward in technology, Nvidia will be able to take advantage of the fast growing need for AI processing power.
Artificial intelligence (AI)-based fields, especially those that need fast computers to run complicated AI models, will likely be greatly affected by the Blackwell GPUs. Big tech companies like Microsoft, Amazon, and Meta Platforms are already putting a lot of money into AI infrastructure. These companies are also some of Nvidia’s most important users. As these companies rush to get the newest chips for their data centers, demand for Blackwell is likely to cause Nvidia’s sales to go through the roof. Reports say that Nvidia could sell up to 300,000 Blackwell GPUs in the fourth quarter of 2024. They think that they could sell up to 800,000 units in the first quarter of 2025. These numbers show how quickly Nvidia’s new technology is being adopted and suggest that it will soon be a big source of cash for the company.
Nvidia is already having a great year in its data center segment, which has been the main source of sales growth in the last few quarters. This is on top of the boost from Blackwell. Given how much the Blackwell GPUs are supposed to help, the company’s prediction of $32.5 billion in revenue for its third-quarter report may be too low. Wall Street thinks it will be a little more than that, at $32.9 billion. Since Nvidia has a history of beating expectations, it’s possible that the company will make even more than that. Nvidia made $30 billion in sales in its second fiscal quarter, which is 122% more than the same time last year. Data center sales rose 154% to $26.3 billion.
More and more people are using cloud computing and AI is getting better very quickly. This has made it possible for Nvidia to keep leading the market. Blackwell’s work to make it cheaper for businesses to build and use advanced AI models is expected to lead to wider adoption, not just among tech giants but also among smaller companies that couldn’t afford the high cost of AI infrastructure before. Because of this, Nvidia’s market for AI-related goods has grown a lot, and the company is ready to take advantage of this trend.
For investors, it’s clear what this means: Nvidia’s stock could keep going up, especially since its new Blackwell chips are being used by a lot of people. The technology is a game-changer in the AI field because it improves performance and cuts costs. Nvidia is likely to continue to benefit as demand for AI solutions grows. There is already a lot of interest from customers, and the company’s data center business is about to report another quarter of amazing growth. This means that investors in Nvidia stock may soon get their money back.
Nvidia still has a good view for the market as a whole, even after the earnings report. Because it is a leader in AI and data center solutions, the company is an important player in the tech industry, especially as the need for AI infrastructure grows in many areas. Big companies are continuing to spend more on AI, and Nvidia can make cutting-edge goods like the Blackwell GPUs. This means that the stock is likely to keep doing well in the long term.
If you’re thinking about investing in Nvidia, the stock seems like a good choice because of the company’s current success and its bright future. The next big thing in AI is just starting, and Nvidia is at the front of this change. There are risks with every investment, but Nvidia is one of the most exciting tech stocks for the coming years because it is a leader in AI and can come up with new ways to solve problems.
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