Latest news with #BlackwellGB200
Business Insider
a day ago
- Business
- Business Insider
‘The Boom Isn't Over,' Says Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) stock continues its record-breaking streak, as it races toward the $5 trillion valuation mark – just weeks after breaching the $4 trillion mark. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Yet, NVDA's journey through 2025 hasn't been entirely smooth. Early in the year, concerns over excessive AI capex by hyperscalers weighed on the stock before the tech giants ultimately confirmed massive investment plans that reignited investor enthusiasm. Still, all good things come to an end eventually. Could the AI spending spree be on the cusp of slowing down? One investor, known by the pseudonym Simple Investment Ideas, believes the AI infrastructure race is only gaining steam, pointing to Elon Musk's latest advances with Grok 4 as a sign that the urgency to expand compute capacity is intensifying across the board. 'AI progress is driven primarily by scaling compute and data, not by new algorithms, as shown by Grok 4's performance leaps,' explains the 5-star investor. 'Hyperscalers are incentivized to over-order GPUs to avoid falling behind, fueling an arms race in AI infrastructure investment.' That arms race, Simple Investment says, plays directly into Nvidia's hands. The company's advantage lies not just in cutting-edge technology, but in its unmatched ability to support the brute-force scaling needed to power increasingly complex AI models. And it's not just about compute power, it's also about energy. Training Grok 4 reportedly consumed 6 GW-hours of energy, enough to power a city for an entire day. That level of demand underscores why Nvidia's energy-efficient accelerators are becoming essential tools for AI leaders. 'The Blackwell GB200 only further extends these advances. When the laws of thermodynamics and scale converge, the advantage that Nvidia holds almost seems unfair,' notes Simple Investment. Moreover, Nvidia's CUDA platform serves as the backbone for AI development across academia and industry. Simple Investment highlights how CUDA's deep integration – from low-level optimization to high-level domain abstraction – creates a productivity moat that rivals struggle to breach. This all-in-one ecosystem not only streamlines AI deployment but also attracts thousands of software vendors and engineers to standardize on Nvidia's stack. As AI adoption accelerates, this sticky software advantage is poised to become an increasingly powerful driver of long-term growth. With infrastructure needs surging and Nvidia supplying the tools to meet them, the AI boom that has propelled the company's rise is unlikely to let up. To this end, Simple Investment's recommendation is simple: Buy NVDA. (To watch Simple Investment Ideas' track record, click here) Wall Street appears to echo that sentiment. With 34 Buy ratings easily outpacing 3 Holds and just 1 Sell, NVDA holds a Strong Buy consensus rating. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
07-07-2025
- Business
- Yahoo
Citi lifts Nvidia's price target on booming sovereign AI demand
Citi (C) is doubling down on Nvidia (NVDA), driven by what it sees as a major expansion in demand for AI infrastructure, particularly from sovereign governments. The firm raised its price target on the chipmaker to $190 per share, implying a roughly 15% upside from Nvidia's current trading levels. Citi analysts said they see Nvidia capturing a larger piece of an expanding total addressable market (TAM) for data center infrastructure. The upgrade comes as Nvidia continues its charge toward a $4 trillion market cap, with shares up 12% in the past month. "We believe sovereign demand is already contributing up to billions of dollars in 2025" and should ramp up further in 2026, analysts Atif Malik and Papa Sylla wrote. Nvidia is involved in "essentially every sovereign deal," the note said, making the company central to the global race to build national AI infrastructure. The firm raised its 2028 AI compute TAM estimate to $563 billion, up 13% from $500 billion, and networking TAM to $119 billion, up from $90 billion, expecting sharp sales increases for Nvidia. Citi noted that at Nvidia's recent Generative AI conference, participants discussed a possible benchmark for AI infrastructure: one supercomputer or 10,000 GPUs per 100,000 employees, a ratio that could drive massive enterprise and government buildouts. Nvidia, whose Blackwell GB200 chips power many of these AI clusters, is already seeing accelerating deployment, according to Citi. Concerns about potential bottlenecks in Nvidia's supply chain have also eased, with Citi reporting that rack buildouts are happening "at a rapid pace." As the company prepares for its next-gen GB300 chips, analysts expect a smooth transition, crediting lessons learned from earlier platform shifts. Citi now expects Nvidia's data center revenue to grow 5% in FY 2027 and 11% in FY 2028. Networking sales are projected to surge by 12% and 27%, respectively. This represents a 20% attach rate, indicating a rising demand for high-performance systems that link large AI clusters. Gross margins are also forecast to continue expanding, normalizing in the mid-70% range by year-end. Still, the bank flagged downside risks, including renewed export restrictions under a potential second Trump administration. Bloomberg recently reported that Malaysia and Thailand could face scrutiny for suspected shipments to China. For now, though, the AI gold rush — especially from public sector buyers — shows no signs of slowing. "Nvidia has line of sight to tens of gigawatts of sovereign and enterprise AI factory buildouts over the next few years," Malik and Sylla wrote. Francisco Velasquez is a reporter for Yahoo Finance. He can be reached on LinkedIn and X.
Yahoo
16-06-2025
- Business
- Yahoo
1 Unstoppable Stock That Could Join the $1 Trillion Club Alongside Nvidia, Apple, Amazon, Microsoft, and More
The American economy produced nine companies with valuations of over $1 trillion, including powerhouses like Nvidia, Apple, and Microsoft. Oracle could join that exclusive club within the next few years, thanks to soaring demand for its artificial intelligence (AI) infrastructure. 10 stocks we like better than Oracle › The U.S. economy produced the world's most valuable companies for more than a century: United States Steel became the first-ever $1 billion company in 1901. General Motors rode the automotive boom to become the first $10 billion company in 1955. General Electric built a conglomerate which became the first $100 billion enterprise in 1995. Apple then crossed the most exclusive milestone of all in 2018, when it became the world's first $1 trillion company. Eight other American companies have joined Apple in the trillion-dollar club since then: Nvidia, Microsoft, Amazon, Alphabet, Meta Platforms, Tesla, Broadcom, and Berkshire Hathaway. I predict another company is likely to join them within the next few years. Oracle (NYSE: ORCL) operates some of the most powerful and most cost-efficient data center infrastructure in the world for artificial intelligence (AI) workloads. Demand is significantly exceeding available supply, as some of the industry's top developers are lining up around the block to use it. Oracle had a market capitalization of $600 billion, so investors who buy its stock today could earn a whopping 65% return if it climbs into the $1 trillion club. Here's why I think it will. Every new generation of AI model requires more computing capacity than the last. Nvidia CEO Jensen Huang says some of the latest "reasoning" models -- which spend more time before rendering a response to produce more accurate information -- use up to 1,000 times more computing power than traditional large language models (LLMs), which specialize in crafting one-shot responses. That computing capacity is delivered by enormous data centers that are filled with graphics processing units (GPUs) from top chip suppliers like Nvidia and Advanced Micro Devices. Most businesses don't have the financial resources to build this infrastructure themselves, so they rent it from companies like Oracle that operate centralized data centers situated all over the world. Oracle's Gen2 Cloud data centers allow developers to scale up to 131,072 of Nvidia's industry-leading Blackwell GB200 GPUs, paving the way for the most powerful AI models to date. Plus, Oracle's infrastructure uses a proprietary random direct memory access (RDMA) networking technology, which moves data from one point to another faster than traditional Ethernet networks. Developers typically pay for computing capacity by the minute, so speedy processing can translate into substantial cost savings. Gen2's scalability and cost efficiency are the reasons top AI developers like OpenAI, Meta Platforms, and Elon Musk's xAI are lining up to use it. However, Oracle simply doesn't have enough capacity to meet demand right now, so it's planning to spend over $25 billion to build new data centers during its fiscal year 2026 (which began June 1). Chairman Larry Ellison says that Oracle will eventually operate more data centers than every other player in the industry combined. He thinks the company can scale up to between 1,000 and 2,000 locations over the long term, which would be more than 10 times its current footprint. Oracle generated $15.9 billion in total revenue during its fiscal 2025 fourth quarter (ended May 31). It was an 11% increase from the year-ago period, which represented an acceleration from the 6% growth the company delivered in the third quarter three months earlier. But the real growth story lies beneath the surface of the headline number. The Oracle Cloud Infrastructure (OCI) segment -- which is where the company accounts for its AI data center revenue -- soared by 52% year over year to $3 billion. And it gets better, because Oracle CEO Safra Katz predicts that OCI's revenue growth will accelerate to 70% throughout fiscal 2026. I mentioned earlier that demand for Oracle's data center capacity is far exceeding supply. That showed up in the company's remaining performance obligations (RPOs) in Q4, which surged by 41% to a record $138 billion. RPOs are like an order backlog that Oracle expects will convert into revenue over time, so they give investors an indication of how much future demand is currently in the pipeline. Oracle generated $4.34 in earnings per share (EPS) during fiscal 2025, which places its stock at a price-to-earnings (P/E) ratio of 49.6. That isn't necessarily cheap, since the Nasdaq-100 technology index -- which hosts all of Oracle's big-tech peers – trades at a P/E ratio of 30.6. However, Oracle's premium valuation might be justified for now considering its accelerating growth and its substantial RPOs, which will give investors confidence that the company can sustain its momentum. Wall Street's consensus estimate (provided by Yahoo! Finance) suggests that Oracle's EPS could soar to $6.75 in fiscal 2026, and then to $8.17 in fiscal 2027. Based on those forecasts, Oracle stock trades at forward P/E ratios of 31.9 and 26.3, respectively. That means that Oracle stock would have to soar by 88% over the next two years just to maintain its current P/E ratio of 47.2, which would catapult the company's valuation to over $1 trillion. To be clear, it won't be easy for Oracle to maintain its premium P/E ratio unless it can convince investors that OCI growth will continue to accelerate. This isn't out of the question, since the company plans to expand its data center footprint by more than tenfold in the coming years. Oracle might still have a pathway to the $1 trillion club even if its P/E ratio shrinks, except it could take four or five years instead of two. In any case, the stock could be a great buy for investors right now. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends Broadcom, GE Aerospace, and General Motors and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Unstoppable Stock That Could Join the $1 Trillion Club Alongside Nvidia, Apple, Amazon, Microsoft, and More was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Automotive
- Yahoo
Analyst Says NVIDIA (NVDA) is ‘Firing on All Cylinders' – ‘Everybody Wants Their Product'
Nvidia (NVDA) shares are in the spotlight as an increasing number of market indicators point to strong growth for the company's chips. The stock has gained about 20% over the past month. Kimberly Forrest from Bokeh Capital talked about the company during a latest program on Schwab Network. She believes Nvidia's chips demand remain strong. "I think the title if I was back on the sell side writing about this it would be like Porsche except no substitute or there is no substitute. You know years and years ago, decades ago, that was Porsche's claim that no other car was as good as theirs and I think NVIDIA Corp (NASDAQ:NVDA) has a real hold on the very high-end and even the less than high-end kind of products that it, you know, product space. So the company is firing on all cylinders, everybody wants their product, they're moving forward with good products and it doesn't look like the biggest fear that an NVIDIA Corp (NASDAQ:NVDA) shareholder has is that somebody else comes up with a good enough chip that's cheaper." A close-up of a colorful high-end graphics card being plugged in to a gaming computer. With its latest numbers and stock performance, Nvidia was able to prove the skeptics wrong. In its recently reported quarter, Nvidia's data center computer revenue rose 76% year over year, driven by Blackwell GB200. Despite a $4.5 billion inventory charge related to US import restrictions for China, the company expects gross margins to reach the mid-70% range by late this year due to scaling Blackwell production. NVDA bulls believe the company can easily offset losses related to China amid new products and market diversification. Saudi Arabia's Humain plans to buy more than 200,000 AI GPUs from Nvidia, potentially generating $15 billion in sales. The UAE reportedly has an agreement for up to 500,000 GPUs. Even without China's involvement for now, Nvidia said nearly 100 AI factories are under construction. These factories have hyperscalers deploying 1,000 GB200 NVL72 racks weekly, each with 72,000 Blackwell GPUs. RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter: 'NVIDIA Corporation (NASDAQ:NVDA) was our top detractor in the quarter as investors took profits following its extraordinary performance in 2024. Despite reporting strong quarterly results, the stock pulled back amid concerns that AI-related demand may be plateauing near-term and that capital expenditures by hyperscalers could moderate. Additionally, investor anxiety rose following the announcement of sweeping new tariffs, which sparked fears of supply chain disruptions and rising input costs across the semiconductor industry. We continue to believe that NVIDIA remains one of the most strategically important companies in global computing, with best-in class GPUs, a dominant software ecosystem, and expanding opportunities in inference, networking, and edge AI. The long-term secular trend toward accelerated computing remains intact, and we believe NVDA is well-positioned to be a key beneficiary.' READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Korea Herald
21-05-2025
- Business
- Korea Herald
Nvidia backs SK hynix in AI chip push at Computex
Nvidia CEO Jensen Huang made a surprise visit to SK hynix's booth at Computex 2025, expressing strong support for their partnership on critical AI memory chips at the major trade show, which kicked off Tuesday in Taiwan. At the booth, where SK hynix showcased a sample of its sixth-generation high-bandwidth memory or HBM 4 chip, Huang examined the prototype and remarked, 'So beautiful.' He also left handwritten messages on the displayed samples, including 'JHH LOVES SK HYNIX!' and 'One team!' His remarks are seen as a reaffirmation of the close ties between the two companies. SK hynix's HBM4 sample was exhibited alongside Nvidia's next-generation Blackwell GB200 chip. SK hynix is currently the main supplier of HBM3E, the latest generation HBM chip that plays a critical role in powering Nvidia's advanced AI processors. During the visit, Huang asked Kim Joo-sun, SK hynix president in charge of AI infrastructure, to 'support HBM4 well.' SK hynix was the first in the industry to begin mass production of 8-layer HBM3E in March last year, followed by 12-layer HBM3E in September. In March this year, it became the first to deliver samples of its sixth-generation 12-layer HBM4, giving it an early lead in the race for next-generation HBM market dominance. For SK hynix, Nvidia is a key customer. According to the chipmaker's consolidated earnings report, a single company accounted for an estimated 27.1 percent of SK hynix's first-quarter revenue, roughly 4.79 trillion won ($3.45 billion), which industry officials believe to be Nvidia. HBM technology also took center stage at Computex 2025. In his keynote speech, MediaTek CEO Rick Tsai emphasized the importance of HBM4 and HBM4E, which are expected to enter the market next year. As demand rises for chips with higher performance and lower power consumption, Tsai noted that the increasing complexity in designing and manufacturing HBM presents significant challenges for chipmakers, and stressed that key industry players must collaborate closely to meet those demands.
