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Globe and Mail
a day ago
- Business
- Globe and Mail
NVIDIA Leads in Data Center GPU Market: Will Blackwell Keep It Ahead?
NVIDIA Corporation NVDA continues to dominate the data center market, driven by its latest Blackwell graphics processing unit (GPU) architecture. In the first quarter of fiscal 2026, the company generated $39.1 billion in revenues from the data center market, representing a 73% year-over-year increase. On the last-quarter earnings call, NVDA stated that Blackwell now contributes nearly 70% of the data center segment's compute revenues, with demand led by artificial intelligence (AI) factories and the rise of advanced reasoning models. NVIDIA's Blackwell platform, particularly the GB200, is built for large-scale AI inference. On the last earnings call, management stated that major cloud players are rapidly deploying Blackwell GPUs, nearly 72,000 GPUs per week by each hyperscaler. With stronger manufacturing yields and expanded availability, Blackwell has become NVIDIA's fastest product ramp in history. NVIDIA is also preparing to ship its next-gen GB300 during the calendar third quarter of 2025. With increased high-bandwidth memory and an efficient drop-in design, the GB300 chip promises a 50% performance boost over GB200. Early sampling has already begun at major cloud service providers. It's not only hardware that has contributed to Blackwell's success. NVIDIA's software ecosystem, including CUDA, NeMo and its inference microservices, allows developers to fully utilize Blackwell's potential. This deep integration makes switching away from NVIDIA harder for customers. As the AI wave grows and more companies build AI factories globally, NVIDIA's lead could strengthen. If Blackwell maintains its current pace and NVIDIA continues to support it with a strong ecosystem, the company's leadership in data centers is likely to continue. Our model estimates indicate that the company's revenues from the data center end-market will witness a CAGR of 30.3% through fiscal 2025 to fiscal 2028. NVIDIA Rivals AMD and Intel Up Their Game in AI Data Centers NVIDIA's major competitors, Advanced Micro Devices AMD and Intel INTC, are also stepping up their capabilities in the data center AI chip market. Advanced Micro Devices' MI300X GPUs are gaining attention for their high memory and power efficiency. Several hyperscalers are testing AMD's solutions as alternatives to NVIDIA's Blackwell, especially in cost-sensitive or specialized workloads. Advanced Micro Devices is also building a strong software stack to grab more customers. Intel is focusing on both CPUs and AI accelerators to grab a market share in the data center space. The company is promoting its Gaudi 3 AI chips as a low-cost option for training and inference. Intel is also working with major cloud providers to expand the adoption of its AI hardware. NVIDIA's Price Performance, Valuation and Estimates Shares of NVIDIA have risen around 31.6% year to date against the Zacks Computer and Technology sector's gain of 10.9%. From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 35.84, higher than the sector's average of 27.86. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 42.5% and 32.2%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days. Image Source: Zacks Investment Research NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report
Time of India
23-07-2025
- Business
- Time of India
Elon Musk's xAI eyes $12 billion debt deal to train Grok on Nvidia chips, launch AI supercluster with 550,000 GPUs; details here
Elon Musk's artificial intelligence venture, xAI, is reportedly planning to raise up to $12 billion in debt as part of an ambitious expansion strategy. The funds will primarily be used to lease Nvidia's advanced chips for developing a large-scale AI data center, according to the Wall Street Journal, which cited sources familiar with the discussions. The financing deal is being spearheaded by Valor Equity Partners, an investment firm led by Musk's close associate Antonio Gracias. Talks are ongoing with multiple lenders to support the chip acquisition. Some of the lenders are seeking repayment within three years and want limits placed on the borrowed amount to reduce their financial risk. Grok training on 230,000 GPUs and counting The primary use of the funds will be to buy Nvidia chips, which will then be leased to xAI to power the infrastructure for Grok—xAI's AI chatbot. Musk posted on X that Grok is currently being trained on 230,000 graphics processing units (GPUs), including 30,000 of Nvidia's GB200 chips. Inference operations are being handled by cloud service providers. Cable pr0n of @xAI GB200 servers at Colossus 2 Musk also announced the development of a second supercomputing cluster, which will be launched soon. The new facility will initially operate with a batch of 550,000 Nvidia GB200 and GB300 chips, marking a significant leap in AI infrastructure. The $13 billion question: What xAI will spend in 2025 Estimates in the trade press suggest xAI may spend around $13 billion in 2025, indicating the financial scale required to stay competitive in the AI race. The company's efforts to scale AI hardware and computing capabilities come in direct competition with firms like OpenAI, Alphabet, and China's DeepSeek. The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years In July, The Financial Times had reported that xAI was seeking new funding, with a valuation between $170 billion and $200 billion. Musk denied this at the time, stating, 'We have more than enough capital.' Musk's AI hardware vision anchored on Nvidia chips Musk has also stated that xAI's long-term vision involves deploying the equivalent of 50 million Nvidia H100 GPUs over the next five years. The H100 is currently an industry standard for AI training and inference. Musk's plan also includes achieving better power efficiency than Nvidia's flagship chips, suggesting an effort to both scale and innovate. While Nvidia remains central to AI compute globally, Musk's entry and investment reinforce just how high the stakes are in the AI infrastructure race.
Yahoo
18-07-2025
- Business
- Yahoo
This Bullish Catalyst for Nvidia Stock Is Coming in September
Nvidia (NVDA) shares are in focus on Friday following reports the artificial intelligence behemoth will initiate wide-scale shipments of its latest GB300 servers in September. The rollout could prove a major inflection point for data center infrastructure as NVDA's modular design strategy and improved supply chain execution could accelerate adoption across hyperscalers and enterprise customers. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Ahead of the aforementioned potential tailwind, Nvidia stock is already up nearly 100% versus its year-to-date low set in the first week of April. Why Is the GB300 Rollout Significant for Nvidia Stock? Nvidia's shift to a more flexible server architecture with the GB300 platform could unlock higher margins and streamline partner integration. Offloading motherboard assembly to customers and using standardized components will enable the multinational to lower design bottlenecks while improving scalability. With validation hurdles largely addressed and partners signaling readiness, September's volume ramp-up could fuel revenue acceleration in Q4. The reports are positive for NVDA shares also because unlike prior launches plagued by cooling and layout complexities, this transition is broadly expected to be smoother, positioning the firm to consolidate its leadership in AI compute and potentially surprise on earnings. NVDA Shares Reiterated as 'Top Pick' JPMorgan analysts remain fully convinced that Nvidia shares could push further to the upside over the next few months as 'artificial intelligence/accelerated compute demand remains strong.' They reiterated the AI stock as a 'top pick' in their research note on Friday, adding the Nasdaq-listed firm looks 'best positioned to weather potential trade/tariff challenging macro environment.' According to the investment firm, NVDA has up to 15% earnings upside after the U.S. government offered reassurances that the chipmaker will soon be able to resume its business in China. Note that Nvidia is broadly expected to earn $0.94 on a per-share basis in its current financial quarter, up significantly from $0.65 a share in the same quarter last year. What Is Wall Street's Consensus View on Nvidia? Nvidia's lead in the fast-growing artificial intelligence market is keeping other Wall Street analysts positive on its stock as well. According to Barchart, the consensus rating on NVDA stock currently sits at 'Strong Buy' with the mean target of about $181 indicating potential upside of another 6% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Business Insider
12-07-2025
- Business
- Business Insider
Super Micro Stock (SMCI) Gets Price Target Hike from Citi's Top Analyst Ahead of Q4 Earnings
Super Micro Computer (SMCI), a provider of servers and IT systems, is set to announce its Q4 FY25 earnings in early August. Wall Street expects the company to report EPS of $0.44 on revenue of $5.96 billion in Q4. Ahead of the results, Asiya Merchant, a 5-star analyst at Citi, raised her price target on the stock to $52, up from $37. While she maintained a Neutral rating, Merchant believes stronger demand for AI servers and easing supply constraints could support growth in the coming quarters. 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. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Merchant ranks 280 out of more than 9,800 analysts on TipRanks. She has a success rate of 75%, with an average return per rating of 26.80% over a one-year period. Analyst Sees AI Growth Ahead, But Margin Concerns Linger Merchant, a Top-rated analyst, sees growing demand in the AI space, especially from large companies and government customers. She noted that Super Micro is beginning to benefit from the ramp-up of Nvidia's (NVDA) GB200 and GB300 platforms, which started shipping in May. She added that Super Micro's management sounds hopeful about turning current deals into real orders over the next two quarters. As Blackwell GPU supply improves, she believes the company will find it easier to deliver products and grow its sales. Still, the analyst remains cautious. She warned that profit growth could slow, as larger rivals like Dell (DELL) and Hewlett Packard Enterprise (HPE) are stepping up competition in the same space. This added pressure could make it harder for Super Micro to grow its margins, even if sales continue to rise. Higher Price Target Reflects AI Buzz Merchant raised her price target to $52 based on a higher earnings multiple of 13.5x FY2027 estimates, compared to her earlier range of 9–10x. She said the move reflects stronger valuations across AI-related stocks and an overall lift in the market. However, the analyst kept her Neutral rating, citing fair valuation and margin pressure ahead of Q4 earnings. Is SMCI Stock a Buy? Super Micro Computer stock has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on six Buy, six Hold, and two Sell recommendations issued in the last three months. The average SMCI price target of $40.92 implies 18.75% downside from current levels.
Yahoo
09-07-2025
- Business
- Yahoo
Vertiv Stock Rises on Backlog Surge: Is This a Sign of More Upside?
Vertiv VRT is emerging as a key player in the global AI infrastructure buildout, offering advanced power and thermal solutions tailored for high-density compute demand for AI-ready infrastructure fueled Vertiv's backlog to $7.9 billion in the first quarter of 2025, up 25% year over year and 10% sequentially. With revenues rising 24.2% year over year to $2.04 billion, the book-to-bill ratio stood at 1.4X, reflecting sustained order strength as hyperscalers and colocation providers continue to scale capacity across North America and in Vertiv's order base is being driven by sustained investments in R&D and capacity, enabling execution at greater scale. As AI-scale deployments become more complex, customers are prioritizing integrated thermal and power infrastructure. Vertiv's collaboration with NVIDIA around GB200 and GB300 reference designs is serving as a key growth driver, reinforcing its role in large-scale infrastructure by strong backlog execution and elevated deal volume, Vertiv now expects 2025 revenues between $9.325 billion and $9.575 billion, implying 18% growth at the midpoint. Organic net sales growth is projected between 16.5% and 19.5%, driven by continued strength in AI-related infrastructure activity. With visibility supported by a strong order pipeline and expanding infrastructure needs, Vertiv is well-placed to capitalize on secular tailwinds in 2025. Vertiv's expanding role in AI infrastructure is attracting competition from the likes of Super Micro Computer SMCI and Dell Technologies DELL, both scaling to meet surging demand from data centers and Micro Computer is advancing GPU-optimized, liquid-cooled server systems designed for high-density AI workloads. Its energy-efficient platforms and fast deployment cycles help address growing infrastructure complexity, positioning Super Micro Computer as a credible peer in large-scale AI Technologies is bolstering its integrated infrastructure portfolio, offering scalable systems to power AI-native applications. With a strong global footprint and broad product suite, Dell Technologies is increasingly competing with Vertiv for enterprise and cloud infrastructure deals. VRT's shares have increased 10.8% year to date, while the broader Zacks Computer & Technology sector has appreciated 7% and the Zacks Computers - IT Services industry has plunged 5.7%. Image Source: Zacks Investment Research Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 17.99X compared with the Computer and Technology sector's 10.2X. VRT has a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for VRT's 2025 earnings is pegged at $3.56 per share, up by a penny over the past 30 days. The figure indicates a 24.91% increase year over year. Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. QuoteVertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
