"Nvidia is undoubtedly one of the best AI companies in the world and is riding the boom. The company makes graphics processing units (GPUs) that power data centers. It also makes AI chips that have seen a massive surge in demand. Nvidia has reported strong growth and strong demand quarter after quarter. It is constantly expanding margins, raising industry expectations."
"The demand for Nvidia's new Blackwell and Rubin GPUs is off the charts. CEO Huang stated that the demand is so high that the company now has an order book of $500 billion for these chips. This is only the beginning for Nvidia. While the stock might not rally like it did in the past two years, it will continue to keep moving higher. The company expects all of this revenue in the next 1-1.5 years."
Massive investment in artificial intelligence has driven outsized returns for technology firms, particularly those supplying AI hardware and data-center services. Nvidia, Palantir, and Broadcom are leading AI performance within the Nasdaq Composite. Nvidia, with a $4.41 trillion market capitalization and 13% Nasdaq weighting, has seen strong revenue and margin expansion driven by surging demand for GPUs and AI chips. Demand for Blackwell and Rubin GPUs created a $500 billion order book, with expected revenue realization over the next 1–1.5 years. Nvidia projects $54 billion revenue and a 73.3% gross margin for the third quarter and has consistently beaten expectations.
Read at 24/7 Wall St.
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