Latest news with #GPUs
Globe and Mail
8 hours 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
Khaleej Times
10 hours ago
- Business
- Khaleej Times
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand, sources say
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after U.S. export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to U.S. research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the U.S. government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The U.S. Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The U.S. Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. KEY PRODUCT IN US-SINO TRADE WAR The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets - elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from U.S. legislators who are worried that giving China access to the H20 will impede U.S. efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS - many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
Yahoo
a day ago
- Business
- Yahoo
AMD Hikes MI350 AI GPU Price by 70%
AMD (NASDAQ:AMD) shares jumped 4.3% on Monday after word got out that the Instinct MI350 AI GPUs are jumping from $15,000 to $25,000, a 70% bump. It still undercuts Nvidia's entry?level Blackwell B200 at $30,000, so AMD figures the MI350's extra compute and bandwidth now match Nvidia's chops, justifying the premium. It's classic AMD: Nvidia?rival performance at a sweeter price. Warning! GuruFocus has detected 5 Warning Signs with AMD. Investors are cheering because this signals tight demand and solid backlogs for AI accelerators. The MI350 is aimed squarely at data centers running large language models and generative AI. Morgan Stanley reckons that the new pricing could tack on about $500 M to AMD's data center revenue next quarter if buyers play along. Market watchers will also track whether customers migrate to pricier MI300 series GPUs or stick with the still?discounted MI350. Why it matters: A 70% price hike shows AMD has real pricing power in the red?hot AI chip race, which could boost its margins and top?line. Investors will be watching AMD's late?July earnings for the impact on bookings, average selling prices and profits. This article first appeared on GuruFocus. 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
2 days ago
- Business
- Yahoo
Can Nvidia Stock Skyrocket Another 370% By 2030? 1 Wall Street Analyst Says Yes.
Key Points Global data center capital expenditures are expected to reach $1 trillion by 2028. Nvidia already takes a massive cut of that spending. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has been one of the best-performing stocks in recent years, with its price up more than 1,000% since 2023 and around 250% since 2024. However, one Wall Street analyst believes that Nvidia still has plenty of room to soar. Phil Panaro of the Boston Consulting Group thinks that the stock could reach $800 per share by 2030, representing a 370% increase from current levels. Considering that it's already the world's largest company, that's a bold call. But is this $800 price target realistic? Let's back-calculate the numbers to find out. Nvidia forecasts monster growth for data centers Nvidia makes graphics processing units (GPUs) alongside other hardware and software that support them. Although originally designed to process gaming graphics, GPUs are incredibly useful for any task that requires a significant amount of computing power. GPUs can process multiple calculations in parallel, which allows them to excel at these complex tasks. They have been widely used in processing engineering simulations, drug discovery, cryptocurrency mining, and their largest assignment to date: training and processing AI models. Nvidia sells most of its GPUs to AI hyperscalers, which then place them in data centers to create powerful computing clusters. Its revenue growth has been impressive, but it's nowhere near done expanding. The company likes to cite third-party research that shows data center capital expenditures (capex) were $400 billion in 2024 and are expected to increase to $1 trillion by 2028. Considering that the chipmaker generated $115 billion in data center revenue during fiscal 2025 (which encompasses most of 2024), it captured nearly 30% of total spending on it. Should this $1 trillion projection come to fruition and Nvidia maintains a 30% market share, that would mean it will generate $300 billion in revenue. Over the past 12 months, the company has $149 billion in revenue, indicating about 100% growth if the projection comes true. That's far shy of the 370% growth needed to turn it into an $800 stock, as Phil Panaro projects, but it's still strong and market-beating growth. But Panaro's call isn't for 2028, it's for 2030. So we need to look beyond the projection that Nvidia is citing. Even an extended time frame doesn't get Nvidia to $800 The global data center capex figure cited by Nvidia in its 2025 GTC event indicates a compound annual growth rate of 26%. If the data center industry can maintain that growth rate for two extra years until 2030, projected capex would reach nearly $1.6 trillion. If the company can maintain its 30% market share, its revenue would be $473 trillion, indicating 217% growth. This clearly falls short of the 350% Nvidia would need to achieve the $800 price target that Panaro has assigned to the stock. As a result, I don't think the chipmaker can reach Panaro's target within his specified time frame. Still, these calculations have shown that if the data center capex projections are met over the next few years -- and Nvidia maintains its market share dominance -- it can be an incredibly strong performer, delivering market-crushing returns. That makes it a solid stock to buy now, and I think investors would be wise to add Nvidia shares over the next few months. Should you buy stock in Nvidia right now? 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Can Nvidia Stock Skyrocket Another 370% By 2030? 1 Wall Street Analyst Says Yes. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Star
2 days ago
- Business
- The Star
Nvidia-YTL Power deal to boost Malaysia as Asean AI hub
KUALA LUMPUR: Malaysia is poised to emerge as a regional hub and centre of excellence for artificial intelligence (AI) in Asean following the signing of a strategic partnership between Nvidia Corp and YTL Power International Bhd . Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the agreement aims to develop AI infrastructure powered by green energy in Malaysia, backed by an investment worth RM10bil. 'This landmark project includes the development of AI data centres, deployment of Nvidia's high-performance graphics processing units (GPUs), and most importantly, the creation of Malaysia's own sovereign large language model (LLM),' he said in a post on social media platform X today. YTL Power is a subsidiary of YTL Corp Bhd . Tengku Zafrul added that YTL will also build an AI ecosystem in collaboration with technology partners, suppliers and local contractors. He said the partnership also reflects the tangible outcomes of Prime Minister Datuk Seri Anwar Ibrahim's international engagements, laying the groundwork for investments that could reshape the nation's economic and technological landscape. In December 2023, Anwar met with Nvidia Corp chief executive officer Jensen Huang and YTL Power managing director Datuk Yeoh Seok Hong. — Bernama
