Nvidia continues to report phenomenal growth, as data centers transition from traditional computing to accelerated computing systems to handle AI workloads. Demand for GPUs has been off the charts, sending the stock up 161% over the last year.
The stock's forward P/E is 28 based on next year's earnings estimate, which is too low considering Wall Street's forecast for 40% earnings growth next year. If Nvidia meets next year's estimates, the share price could climb over $200.
Management expects to begin generating revenue from Blackwell in the fourth quarter. This revenue will contribute to the demand for its current-generation chip, which indicates a strong positive trend for the company.
Customers are buying Nvidia's hardware for generative AI model training and inferencing, which is driving growth for its data center business, attracting demand from consumer internet services and thousands of start-ups creating AI applications.
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