Latest news with #GB300
Yahoo
19 hours ago
- Business
- Yahoo
Nvidia has soared 45% in 2 months. These forces are reviving the hype for Wall Street's favorite AI play.
Nvidia shares are up 20% in a month, reflecting a major rebound for the chipmaker. Shares were down as much as 31% year-to-date through April as tariffs rocked markets. Since April lows, the AI titan has been boosted by fresh catalysts that have revived investors' enthusiasm. Nvidia stock has embarked on a fresh rally thanks to four big catalysts that are generating new enthusiasm for artificial intelligence chip maker. The stock has climbed 20% over the last month. Since its most recent low in April, the move up is even sharper. After bottoming during the broader market sell-off caused by Donald Trump's tariff announcements, the stock is up 45%, a gain of about $1 trillion in market cap. The stock is up about 5% year-to-date. This embedded content is not available in your region. That latest rally follows a rough few months for Nvidia. Shares were down more than 30% year-to-date in early April as concerns swirled around export controls and Trump's tariffs, which complicated the chipmaker's business in China. While the stock has benefited from an easing of tariff-related headwinds that's also boosted the broader market, there are several company-specific forces driving the rally. Here is what's sparked the latest run of gains for the top chip maker. The Commerce Department did away with the Biden administration's AI diffusion rule in mid-May, removing restrictions on which countries Nvidia can sell AI chips to. Those restrictions have been a major overhang for Nvidia stock this year. At a recent tech conference, Ceo Jensen Huang told reporters that export controls have hurt Nvidia's business in China. "All in all, the export control was a failure," Huang said at the event. "The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, have been proven to be fundamentally flawed." Nvidia announced a major partnership with Humain in May. The AI firm is controlled by Saudi Arabia's Public Investment Fund. The deal involves Humain purchasing advanced semiconductors from Nvidia to create AI infrastructure in the nation. In the first phase of the project, Nvidia will send 18,000 GB300 Frace Blackwell AI supercomputer chips, the firm said in a statement. That partnership came shortly after Saudi Arabia pledged to invest $600 billion in various US industries, including AI and infrastructure. "Those 'allies' want to invest here in the USA and also get a hold of a TON of Nvidia chips for domestic AI factories. For Nvidia shareholders, it would seem that this repeal is great news and that the administration is reigniting the 'Sovereign Thesis,'" analysts at Melius Research wrote in a note last month. Nvidia's first-quarter results were once again strong. The chipmaker reported $44.06 billion in revenue, above analysts' estimates of $43.32 billion. Perhaps more importantly, however, Huang soothed investors who have been nervous about the impact of disruptions to business in China. On the earnings call, the company noted that it took a hit from China, but business is still basically booming. Huang slammed export controls, but he affirmed his faith in the Trump administration. "The president has a plan," Huang said to investors. "He has a vision, and I trust him." Deepwater Asset Management said last week that Huang's comment suggests that the chipmaker could be in a favorable position as trade negotiations between the US and China continue. "My best guess is Nvidia will be part of a broader trade agreement with China," analysts from the firm wrote. The AI hyperscalers like Meta Platforms and Microsoft don't appear to be pulling back on AI spending. Tech titans like Meta, Microsoft, and Amazon have pledged to spend more than $300 billion this year on AI-related capex. Apple, meanwhile, has said it would spend $500 billion over the next four years. "Q1 earnings from mega-cap tech companies have also reinforced AI investment visibility, with customers maintaining or increasing their 2025 capex plans," Angelo Zino, a senior equity analyst at CFRA Research, wrote in a note, adding that he believed Nvidia's growth in data centers would run on for at least the next two years. Read the original article on Business Insider
Yahoo
3 days ago
- Business
- Yahoo
Prediction: This Artificial Intelligence (AI) Company Will Be Worth Over $5 Trillion in 10 Years
Enterprises are rapidly adopting Nvidia's Blackwell GPUs, which offer better price performance compared to its previous Hopper family. The company's popular CUDA software ecosystem provides it with a significant competitive advantage. Planned purchases by big customers like the Stargate project and Saudi Arabia's new AI company, HUMAIN, will strengthen Nvidia's position in the global AI landscape. 10 stocks we like better than Nvidia › Shares of Nvidia (NASDAQ: NVDA) have been impacted by several factors, including increasing macroeconomic uncertainty, geopolitical tensions, ongoing tariff wars, export controls, and rising competition from Chinese companies in the past few months. However, the recent earnings performance -- including its recent impressive result in the fiscal first quarter of 2026 -- demonstrates why investors should not let the short-term noise distract them from the company's long-term growth prospects. Nvidia's first quarter fiscal 2026 earnings performance (ending April 27) validates its position as the clear leader in the artificial intelligence (AI) -powered hardware, software, and infrastructure services market. Revenue soared 69% year-over-year to $44.1 billion, while data center revenue surged 73% year-over-year to $39.1 billion in the first quarter. These tailwinds can propel Nvidia's market value to over $5 trillion in the next decade. Nvidia's dominance in the AI chip market, where it still controls a more than 80% share, should remain unchallenged at least for the next few years. The company's latest Grace Blackwell 200 (GB200) graphics processing units (GPUs) enable organizations to run computationally heavy reasoning AI models with 25 times higher performance and at a twentieth of the cost of Hopper H100 chips. The Blackwell ramp-up has been the fastest product launch in Nvidia's history and accounted for nearly 70% of data center compute revenues in the recent quarter. Major hyperscalers are already deploying nearly 72,000 Blackwell GPUs weekly across their data centers and are planning to further ramp output in this quarter. Furthermore, Nvidia is sampling GB300 systems at major cloud service providers and expects production shipments to commence by the end of the second quarter. While these systems have the same architecture, physical footprint, and mechanical and electrical specifications as GB200, they offer 50% more high-bandwidth memory capacity and a 50% increase in inference computing performance. Hence, cloud service providers can transition from GB200 to GB300 systems while benefiting from higher performance Nvidia's software ecosystem has also become a strong moat, ensuring that customers will find it prohibitively costly to switch to competitors' chips. The company's comprehensive CUDA parallel programming platform is currently used by 5.9 million developers to accelerate GPUs for various general-purpose applications effectively. CUDA is currently used to accelerate all AI models and over 4,400 applications. Subsequently, CUDA helps prevent significant infrastructure investments from becoming obsolete in an exceptionally fast-evolving market. Additionally, the company launched its TensorRT software package for inference (real-time deployment of trained AI models) optimization and the TensorRT-LLM software library to ensure the fast and efficient running of large language models. Nvidia partnered with Humain, a newly launched AI company owned by Saudi Arabia's Public Investment Fund, to build AI factories with 18,000 of its latest GB300 Blackwell chips in the first deployment phase. Nvidia is also playing a key role in the Stargate Project, through which OpenAI, SoftBank, and Oracle have said they plan to invest $500 billion into U.S.-based AI infrastructure over the next four years. These strategic alliances could be significant growth catalysts for Nvidia in the long run. In its fiscal 2025, which ended Jan. 26, the chipmaker's revenues grew by 114% to $130.5 billion. While analysts are projecting lower revenue growth rates for future years, the consensus expectation is still for the company to grow quickly. Nvidia's revenues are forecast to increase by 52.8% and 23.9% in its fiscal 2026 and fiscal 2027, respectively. And the company's already off to a good start by recording 69% revenue growth in Q1 of fiscal 2026. In that context, it is reasonable to expect Nvidia to grow at a compound annual rate of nearly 20% over the next decade. If it does, it would wind up with about $808 billion in revenues in its fiscal 2035. Nvidia reported an exceptionally high net income margin of 55.8% in its fiscal 2025. The company has been able to steadily expand its margins in the past couple of years, largely due to its dominance in the AI market. Even if we assume that it will have to accept some margin contraction due to increasing competition and scale, it is reasonable to expect it to produce a net income margin of nearly 27.9% -- its 10-year median margin -- in fiscal 2035. With a top line of $808 billion, that would give it a net income of around $225 billion that year. Nvidia is trading at around 32.6 times forward earnings. Analysts have projected 5-year forward P/E multiple of 23.5x for Nvidia. Assuming this valuation multiple for the next 10 years , the company can reach a market value of $5.29 trillion by 2035. Hence, the company is well positioned to cross the $5 trillion market capitalization, even under conservative expectations. There are reasons to suspect its market value could grow even higher, too -- consider Nvidia's upcoming AI initiatives, such as Sovereign AI, agentic AI, and physical AI. Nvidia is also benefiting from the increasing demand for high-performance chips in gaming and AI PCs. Gaming revenue rose 42% year-over-year to $3.8 billion in the first quarter, driven by strong adoption of Blackwell architecture systems from gamers, creators, and AI enthusiasts. Enterprise AI is also becoming a significant growth catalyst, with Nvidia bringing AI-powered storage, computing, and networking capabilities directly to corporate environments. The company's RTX Pro, DGX Spark and DGX Station enterprise AI systems are targeting the $500 billion market opportunity. Nvidia's Omniverse and robotics platforms are also powering factory automation and humanoid robotic systems. With all that in mind, long-term investors should consider picking up at least a small stake in Nvidia to profit from the AI wave over the next decade. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 May 19, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy. Prediction: This Artificial Intelligence (AI) Company Will Be Worth Over $5 Trillion in 10 Years was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
27-05-2025
- Business
- Yahoo
Lynx: Risk priced in, Nvidia could surprise to the upside
-- Nvidia stock could break out to new highs following its earnings report, according to Lynx Equity, which has raised its price target from $140 to $160. 'After a couple of quarters of inline results, we think NVDA has the potential to provide upside to muted investor expectations,' the firm wrote in a new note. Lynx, which had previously highlighted concerns such as heating issues with the GB300 GPU and tariff exposure, now sees many risks as 'priced in.' The analysts credited Nvidia's ability to 'steamroll through' challenges ranging from delayed product launches and trade restrictions to grid limitations and scaling constraints. They cited new growth vectors and capacity expansion as reasons for optimism. 'GB200 has overcome its teething issues,' Lynx said, pointing to a sharp ramp-up in production at Foxconn (SS:601138) and a $500 million new manufacturing campus in Texas. Additionally, a resurgence in CoWoS capacity build at TSMC signals recovery in Nvidia's supply chain. Lynx also highlighted Nvidia's 'stealth entry' into Edge AI through its partnership with MediaTek, calling it a significant long-term opportunity, particularly in automotive and enterprise markets. Tariff risks appear largely mitigated, according to the firm. 'NVDA has in place a carefully crafted strategy to avoid nearly all tariffs,' Lynx said, noting recent exemptions from the U.S. Commerce Department and Nvidia's diversified manufacturing footprint. Lynx also pointed to 'mega deals' such as the $500 billion Stargate project and new funding for AI clients like OpenAI and CoreWeave as likely to support future revenue growth. 'NVDA is on the verge of breaking out of the range and is headed for new highs,' Lynx concluded, maintaining a bullish stance into the earnings release. Related articles Lynx: Risk priced in, Nvidia could surprise to the upside Temu owner PDD Holdings shares fall sharply on big Q1 results miss SoundHound shares jump as Piper Sandler starts coverage at Overweight Sign in to access your portfolio
Business Insider
27-05-2025
- Business
- Business Insider
Analysts ‘Cautious About Near-Term Volatility' In AI Demand on Lackluster Nvidia Upgrade
Daiwa analysts have warned that they are 'cautious about near-term volatility' for artificial intelligence (AI) hardware demand following Computex 2025. The tech expo took place last week and ended on Friday. Daiwa analysts said it was largely a non-event and highlighted how this could impact hardware demand in the AI sector. Confident Investing Starts Here: According to the firm's analysts, there wasn't much at Computex that suggested AI hardware demand will be strong in 2025. The analysts also pointed to the limited differences between Nvidia's (NVDA) GB200 server and its new GB300 server as a potential downside for 2025 demand. What About Long-Term AI Demand? Daiwa analysts still have high hopes for AI demand in the long-term. They stated 'we have a positive long-term view on AI computing demand, driven by the ongoing shift to agentic and physical AI.' This has them more concerned with how AI hardware demand will be in 2026, than in 2025. While the warning comes alongside Nvidia's modest server upgrade, limited AI hardware demand could affect other companies in the sector. Advanced Micro Devices (AMD), IBM (IBM), Super Micro Computer (SMCI), Dell Technologies (DELL), and Lenovo (LNVGF) are all companies that could suffer if AI demand remains low in the near-term. Which AI Stocks Are Worth Investing In? Turning to the TipRanks stock comparison tool, traders can see which AI stocks have the best analyst ratings and price targets. NVDA, DELL, and LNVGF stand out as AI server stocks with consensus Strong Buy ratings. Of them, Nvidia and Lenovo offer the best upside potential at 25.3% and 27.91%, respectively. However, NVDA's stock price target is significantly higher than LNVGF's at 164.51, compared to $1.65. Nvidia is also a leader in the AI space, making it a potentially safer investment compared to others on this list.
Gulf Today
23-05-2025
- Business
- Gulf Today
UAE to build the world's largest set of AI data centres in Abu Dhabi
The first phase of a massive new artificial data center in the United Arab Emirates will come online in 2026, likely with 100,000 Nvidia chips. The "Stargate UAE" project is part of a deal brokered last week by US President Donald Trump to build the world's largest set of AI data centers outside the United States, despite previous US restrictions on sending advanced technology to the UAE because of its close ties to China. The 10-square-mile (26-sq-km) site in Abu Dhabi will eventually host 5 gigawatts worth of data centers. The first phase of that project will be the 1-gigawatt Stargate UAE project, built by state-backed UAE firm G42 in partnership with US firms OpenAI, Oracle, Nvidia and Cisco Systems, as well as Japan's SoftBank Group. The companies on Thursday said that the Stargate UAE project will use Nvidia's Grace Blackwell GB300 systems, currently the most advanced AI server that Nvidia offers. The first 200 megawatts of capacity will go live in 2026, the companies said. The group did not give a number of servers, but analyst firm TrendForce estimates that GB300 servers with 72 chips each consume about 140-kilowatts of power, which equates to about 1,400 servers or 100,000 Nvidia chips. This first-in-the-world platform will enable every UAE government agency and commercial institution to connect their data to the world's most advanced AI models," Larry Ellison, Oracle's chief technology officer and chairman, said in a statement. The Trump administration earlier this month rescinded a rule put in place by President Joe Biden that would have restricted the flow of AI chips to countries such as the UAE. The US Commerce Department, which oversees export controls, has not said what will replace the rule but said last week that it will convene a working group between the U.S. and UAE to ensure that the project meets "robust U.S. security standards and other efforts to responsibly deploy AI infrastructure, both in the UAE and globally." Reuters
