Nvidia (NVDA, Financial) has solidified its position as a leader in the artificial intelligence space, as higher-than-expected third-quarter numbers forced analysts to raise their price targets. For the financial year that ended on October 27, the semiconductor giant generated a staggering $35.1 billion, 94 % up on the previous year’s results, with data centre business generating an impressive 112% year-on-year growth. The strong results have boosted the already positive outlook for Nvidia’s future prospects, especially in artificial intelligence and the new Blackwell chips.
On Wall Street, even Jim Cramer and other analysts, including Wedbush’s Dan Ives, are optimistic about Nvidia’s capacity to guarantee massive returns on investment. Sitting on top of it all, Ives has even forecasted a Nasdaq jump of over 2000, based on Nvidia’s multiplier effect, which Ives estimates to be a circular flow that will deliver between $8 to $10 for every dollar invested in Nvidia chips across the technology industry.
Nvidia, for instance, maintains strength in the diverse demands of AI chips and continuing relationships that make it ready to benefit from the artificial intelligence industrial revolution. Information about the company’s recent stock buybacks and its anticipated high performance in Q4 is also evidence of investors’ confidence in the company. Despite the recent downward spiral in its margins, Walmart’s CFO had earlier stated that this was a temporary situation brought about by the ups in the production of Blackwell chips. However, Nvidia is well set for stunning growth as it continues to steer AI developments.
This article first appeared on GuruFocus.
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