Nvidia's Blackwell Chip Surge Propels Stock Skyward Amid AI Boom
1min read Nvidia (NVDA) has seen a steady rise with a 0.78% gain last week, marking a three-day streak and a 4.86% increase over those days. Year-to-date, the stock has soared 178.8%, pushing its market capital to $3,385.14 billion.
In recent developments, analyst Ming-Chi Kuo has highlighted Nvidia's Blackwell GB200 chip order boost, with Microsoft being the major client. Orders for the fourth quarter are expected to surge three to four times, overshadowing other cloud service providers combined.
The production of Blackwell chips is anticipated to expand strikingly, with an expected shipment increase to 50,000-55,000 units by the first quarter of 2025, signaling a path towards a million-unit sales target in just a few quarters. Nvidia's CEO Jensen Huang stated that the demand for Blackwell chips is "crazy."
Despite hitting historical highs, Nvidia's stock is expected to continue its upward trajectory. Analysts remain optimistic, with projections for the company’s EPS to rise between 13% to 20% in the coming years.
Challenges remain, as AWS disclosed that systems featuring Nvidia's Blackwell chips will not be available until early next year due to redesign efforts, resulting in a shift from the initial timeline. AWS is collaborating closely with Nvidia to scale production volumes.
Nvidia remains at the forefront of AI chip demand, becoming one of the most valuable firms globally. Despite production delays, significant revenue from the processors is anticipated in the fourth quarter.
Moreover, Nvidia-backed cloud provider Ubitus is planning a new data center in Japan, emphasizing proximity to nuclear power sources. This move underlines the crucial role of stable energy supply in supporting advanced AI operations, and Ubitus is exploring nuclear energy as a viable option over renewables for meeting demanding power needs.
Nvidia’s influence continues to grow as companies like Google, OpenAI, and Microsoft actively deploy its Blackwell chips. The enthusiasm for Nvidia's groundbreaking technology underscores its dominant market position and its essential role in the evolving AI landscape.
