Nvidia Stock: A No-Brainer Buy After Blackwell's Unprecedented Demand

Nvidia (NVDA) stock has been on a tear, and for good reason. The company's latest earnings report and the unprecedented demand for its new Blackwell platform have investors clamoring for a piece of the action. But is Nvidia stock still a no-brainer buy after this key event? Let's dive into the details and find out.



Unprecedented Demand for Blackwell

Nvidia's latest earnings report was nothing short of spectacular. The company's revenue for the third quarter of fiscal 2025 soared to $35.1 billion, up 17% sequentially and 94% year-over-year. The data center segment, in particular, achieved record revenue of $30.8 billion, up 17% sequentially and 112% year-over-year. This growth was fueled by the adoption of Nvidia's Hopper architecture and the deployment of Nvidia H200 infrastructure by cloud service providers.

But the real star of the show was Nvidia's new Blackwell platform. CEO Jensen Huang revealed that production of Blackwell GPUs is "in full steam," and CFO Colette Kress mentioned that Nvidia could exceed its previous Blackwell revenue estimate of "several billion dollars" in the current quarter. This staggering demand for Blackwell highlights the platform's potential to revolutionize AI and data center markets.



Growing AI and Robotics Opportunities

Nvidia's CEO, Jensen Huang, highlighted the multi-trillion-dollar opportunities in AI and robotics, emphasizing that Nvidia is well-positioned to serve these markets with its expertise, scale, and ability to deliver full-stack and full-infrastructure solutions. As AI and robotics continue to transform industries and enterprises, Nvidia's strategic partnerships and industry collaborations will play a crucial role in solidifying its market leadership.

Strategic Partnerships and Industry Collaborations

Nvidia's strategic partnerships and industry collaborations have been instrumental in driving its growth and maintaining its dominant position in the AI market. The company's strong relationships with major cloud providers, enterprises, and governments enable it to expand its reach and foster innovation. Some key examples of these partnerships include:

1. Cloud Service Providers (CSPs): Nvidia's data center segment achieved record revenue, with CSPs accounting for approximately half of the sales. CSPs such as AWS, CoreWeave, Microsoft Azure, Google Cloud, and OCI are deploying Nvidia's H200 infrastructure and high-speed networking to serve rapidly rising demand for AI training and inference workloads.
2. Enterprise Private Cloud and Sovereign Regional AI Clouds: Nvidia's GPU regional cloud revenue jumped year-over-year as North America, India, and Asia Pacific regions ramped up Nvidia Cloud instances and sovereign cloud build-outs. These collaborations with enterprises and governments further expand Nvidia's reach and solidify its market leadership.
3. Industrial Edge and Robotics: Nvidia's expertise in AI and robotics enables it to serve a wide range of industries, from hyperscale clouds to industrial edge and robotics. The company's full-stack and full-infrastructure approach allows it to cater to diverse customer needs, making it an attractive partner for businesses looking to integrate AI into their workflows.
4. OpenAI: Nvidia shipped one of the first Blackwell DGX engineering samples to OpenAI, demonstrating its collaboration with leading AI research organizations. This partnership helps Nvidia stay at the forefront of AI innovation and maintain its market leadership.



Cautions and Conclusion

While Nvidia's recent earnings report and the unprecedented demand for Blackwell make a strong case for buying the stock, investors should remain cautious. The stock's sky-high valuation, with a P/E ratio currently around 52.65, has some analysts waving caution flags. Questions about sustainability, potential competition, and whether the AI hype can keep delivering on growth expectations loom over the company.

However, Nvidia's fundamentals remain strong, and its dominance in AI and data center markets, coupled with its strategic partnerships and industry collaborations, position it well for long-term growth. As AI and robotics continue to transform industries and enterprises, Nvidia's expertise, scale, and ability to deliver full-stack and full-infrastructure solutions will remain in high demand.

In conclusion, Nvidia stock looks like a no-brainer buy after this key event, but investors should remain vigilant and monitor the company's progress closely. With its strong fundamentals, strategic partnerships, and industry collaborations, Nvidia is well-positioned to capitalize on the growing AI and robotics markets and continue its impressive run.