Up about 115% since its April low, NVIDIA Corp. (NASDAQ: NVDA) has been one of the strongest tech giants on the market. It’s all thanks to the artificial intelligence (AI) boom, which is being punctuated by AI capex (capital expenditure) spending, a potential multi-trillion-dollar surge in AI infrastructure spending, and blowout earnings and guidance.
In the company’s third quarter, NVIDIA posted earnings per share (EPS) of $1.30, which beat estimates by four cents. Revenue of $57 billion, up 62.5% year over year, beat by $1.91 billion. Data center revenue of $51.2 billion was up 25% quarter over quarter, and up 66% year over year.
Even better, chief executive officer (CEO) Jensen Huang noted in the company’s earnings report.
"Blackwell sales are off the charts, and cloud GPUs are sold out,…Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We've entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
But this isn’t just a story for growth investors. While we wait for $350, we can collect the company's dividend of a penny per share, which is payable December 26 to shareholders of record as of December 4.
Moving forward, NVIDIA expects to generate $65 billion in revenue, which would be above expectations of $61.98 billion.
One analyst is calling for NVIDIA to hit $350 a Share
According to Loop Capital's Ananda Baruah, NVDA stock could rally to $350, as the tech giant gets caught up in the AI demand boom that shows no signs of cooling.
Goldman Sachs just raised its price target on NVDA stock to $250 with a buy rating following NVIDIA's impressive earnings. Evercore ISI analysts raised their price target to $352 with an outperform rating, citing accelerating revenue growth and improvements with product availability.
Don't pay much attention to AI bubble talk
Sure, over the last few weeks, NVDA stock dipped from $212.19 to $186.52.
But most of that was because of AI bubble talk, which we don't buy into. Neither does Goldman Sachs, which says the AI story is just getting started.
Even Mary Callahan Erdoes, CEO at JPMorgan Asset and Wealth Management, dispelled worries over valuation, saying that AI is presenting opportunities not fully appreciated or understood yet," as noted by CNBC. "AI itself is not a bubble. That's a crazy concept… We are on the precipice of a major, major revolution in a way that companies operate."
Staying Long NVIDIA is Still a Smart Move
If you take away one thing from the NVIDIA earnings report, it’s that the artificial intelligence boom is still accelerating. Forecasts now place AI's value between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. Fueling momentum, some of the largest tech companies are spending billions on AI capex.
- Google raised its 2025 capex outlook to $91 billion to $93 billion
- Microsoft is increasing its spending 74% to $34.9 billion
- Meta nearly doubled capex to $19.37 billion, far above expectations
- Amazon projects $125 billion in 2025 capex, with more increases planned for 2026
Even better, analysts at UBS now expect global AI capex to hit $571 billion in 2026, and potentially to $3 trillion by 2030.
Again, with the AI boom showing very little signs of slowing, NVIDIA will remain a standout buy opportunity. Despite talk of a bubble, much of Wall Street isn't buying into it.
In short, go long on NVIDIA for the long term.
·
·
0 Response to "📈 This week’s 20x (missed it?)"
Post a Comment