Nvidia dominates GPU market with strong sales and future growth potential.

From Nasdaq: 2024-11-22 05:40:00

Nvidia (NASDAQ: NVDA) dominates the GPU market for data centers, adding $3.2 trillion to its valuation in 2 years. Despite beating Wall Street’s expectations with new Blackwell GPUs, the stock dipped 2.5% after hours. Demand for GPUs like the H100 and H200 for AI development has been strong, but the new Blackwell architecture promises even faster AI inference at a cost-efficient price point.

The company reported $35.1 billion in sales for the fiscal 2025 third quarter, up 94% YoY, with data center segment revenue growing 112%. Nvidia expects $37.5 billion in Q4 revenue, driven by Blackwell GPU sales. Analysts predict a significant increase in stock price, with Morgan Stanley estimating 20-fold growth in Blackwell shipments and major AI infrastructure spending by top tech companies.

Despite a modest post-earnings dip, Nvidia’s stock is up 202% this year. With a forward P/E of 33.8 based on projected earnings for fiscal 2026, the stock could see a 73% gain next year to align with its historical average. Blackwell GPU shipments are expected to surge, supporting further stock growth and potentially outperforming conservative earnings estimates.

Investors might consider the long-term potential of Nvidia stock, as the company continues to innovate in the AI and data center markets. While the stock may have experienced short-term fluctuations, its strong position in the industry and growth prospects make it a compelling investment opportunity.



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