Nvidia's revenue is soaring, launching new Blackwell chip - positive.

From Nasdaq: 2024-12-04 05:10:00

Nvidia’s revenue has skyrocketed thanks to dominating the AI chip market with an 80% share. Despite a recent slowdown in growth, the company is launching a key product, the Blackwell architecture and chip, which is in high demand. Investors are watching to see if Nvidia can maintain its momentum.

Nvidia’s profitability remains strong, with gross margins consistently above 70%. While profitability may dip temporarily as production ramps up for the Blackwell chip, Nvidia predicts margins will return to the mid-70% range in the second half of next year. Demand for AI products continues to drive revenue growth.

Investors have a second chance to potentially capitalize on Nvidia’s success with a “Double Down” recommendation. Past investments in companies like Apple and Netflix have yielded significant returns. Now may be the best time to buy into Nvidia before it’s too late, as the company continues to lead in the AI market.

John Mackey and Randi Zuckerberg, both involved with major tech companies, have positions in Nvidia. The Motley Fool recommends and has positions in Amazon, Meta Platforms, and Nvidia. Consider long-term prospects and strong profitability when investing in Nvidia, as the AI market is expected to grow significantly in the coming years.



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