Chip Giant Sees Surge in Demand for Next-Gen Processors
Nvidia’s stock soared on Thursday, with shares jumping as much as 5%, after CEO Jensen Huang revealed that demand for the company’s cutting-edge Blackwell chips has been overwhelming. In a post-market close interview with CNBC, Huang confirmed that the chips are now in full production, dispelling concerns about recent design issues that had caused delays in customer rollouts.
Huang attributed the strong demand to the intense competition among companies to get their hands on the latest technology. “Everyone wants to be at the forefront of innovation,” he said. The CEO’s reassurance has eased investor concerns, which had been mounting due to the delayed rollout of Blackwell chips.
Despite recent market volatility, Nvidia’s stock has continued to defy gravity, surging over 170% in the past year and a staggering 2,700% over the past five years. The company’s year-to-date gain stands at around 150%. A whopping 90% of Wall Street analysts recommend buying the stock, with a consensus target price of $147.60 over the next year.
The chipmaker’s fortunes were further boosted by its involvement in the latest funding round of ChatGPT developer OpenAI, which raised a massive $6.6 billion to reach a valuation of $157 billion. Analysts believe that this investment will drive data center demand, ultimately benefiting Nvidia. “The funding round has a direct impact on Nvidia’s prospects,” said Gil Luria, senior software analyst at DA Davidson. “That’s why the stock is up today.”
Leave a Reply