Nvidia's H100 GPU launch boosts revenue and market share, with future growth expected

From NASDAQ: 2024-05-02 04:15:00

Nvidia’s H100 data center GPU has transformed the company, boosting its revenue and margins significantly since its launch in 2022. The chip has propelled Nvidia’s data center business to new heights, leading to record revenue and a market share of over 90% in the AI chip market.

Following the success of the H100, Nvidia has announced the upcoming release of the H200 GPU, featuring upgraded high-bandwidth memory for improved performance. Additionally, the company plans to launch Blackwell architecture-based GPUs later this year, promising a substantial increase in AI training and inference capabilities.

With strong demand expected for the new chips, Nvidia’s data center revenue is forecasted to continue growing. Market research firm Omdia projects $87 billion in data center revenue for Nvidia this year, with potential for even higher revenue in the long run as AI adoption expands.

Investors are encouraged to consider buying Nvidia stock now, with future chip releases likely to sustain the company’s stock market rally. Nvidia’s current valuation at 36 times forward earnings presents an attractive opportunity, especially considering its position as a leader in the AI chip market and potential for further growth.



Read more at NASDAQ: If You’d Invested $1,000 in Nvidia When the H100 Was Launched, This Is How Much You Would Have Today