Nvidia’s AI Boom: What’s Next for the Surging Stock?
A Leader in Artificial Intelligence
Nvidia’s (NASDAQ: NVDA) remarkable performance in the artificial intelligence (AI) boom has left investors eager for more. The company’s graphics processing units (GPUs) are in high demand, driving revenue in its data center segment to new heights.
Soaring Revenue and a Dominant Segment
In its fiscal 2025 second quarter, ended July 28, total revenue more than doubled year over year to $30 billion, with an impressive 88% of those sales coming from its data center group. This crucial segment is expected to continue driving the stock in the near term.
The Big Question: Can Nvidia Continue Its Ascent?
After a staggering 187% gain so far this year, investors are wondering if Nvidia’s shares have more room to grow. A key indicator can provide valuable insight into the stock’s future performance.
GPU Supply and Demand: A Crucial Factor
Nvidia has struggled to meet demand for its H100 and H200 GPU chips. However, with its next-generation Blackwell chips now in production and sales ramping up, CEO Jensen Huang is optimistic about the future. The company plans to release new technology annually, with an accelerator dubbed Rubin slated for 2026.
A Key Data Point to Watch
Investors will get their first glimpse of Blackwell’s impact on sales in the fiscal 2025 third-quarter report on November 20. A crucial metric to watch is Nvidia’s data center segment quarterly sales growth. Although growth has decreased over the last five quarterly periods, a reversal of this trend is necessary for the stock to continue its incredible run.
The Role of Blackwell in Nvidia’s Future
Blackwell, a next-generation AI accelerator, could be the catalyst for renewed growth. With Nvidia’s stock already running up in anticipation of continued growth, investors will be watching closely to see if the company can deliver.
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