Should Investors Load Up on Nvidia Before Its Blackwell Chip Launches?

Motley Fool09-26 18:45

Nvidia's expected growth makes a strong argument for buying the stock today. Blackwell seems poised to deliver on the massive expectations set for it. There are still risks -- watch the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Liquidmethod
09-27 06:31
Liquidmethod
Nvda black well launch

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2470789352?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F791456%2Fai-data-center-chip.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-09-26 18:45","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2470789352","market":"us","top_or_hot":-1,"title":"Should Investors Load Up on Nvidia Before Its Blackwell Chip Launches?","media":"Motley Fool","content":"<div>\n<p>Nvidia's expected growth makes a strong argument for buying the stock today.\n\n\n\n\n\n\n\nBlackwell seems poised to deliver on the massive expectations set for it.\n\n\n\n\n\n\n\nThere are still risks -- watch the ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should Investors Load Up on Nvidia Before Its Blackwell Chip Launches?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould Investors Load Up on Nvidia Before Its Blackwell Chip Launches?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-26 18:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia's expected growth makes a strong argument for buying the stock today.\n\n\n\n\n\n\n\nBlackwell seems poised to deliver on the massive expectations set for it.\n\n\n\n\n\n\n\nThere are still risks -- watch the ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0006306889.USD","symbol_name":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","start_time":0,"source_url":"https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/","article_id":"2470789352","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F791456%2Fai-data-center-chip.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2470789352","pubTimestamp":1727347500,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The market is banking on Nvidia's next-generation chips to deliver the growth needed to keep the stock upright.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","BK4516":"特朗普概念","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0724617625.USD":"BGF GLOBAL ALLOCATION \"A4\" (USD) INC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","INTC":"英特尔","BK4567":"ESG概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","IE00BD4GTW91.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) INC","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","BK4566":"资本集团","BK4587":"ChatGPT概念","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","BK4077":"互动媒体与服务","L":"洛斯公司","3NVD.UK":"LS 3X NVIDIA","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","NVDA":"英伟达","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","PEG":"公务集团","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","BK4208":"复合型公用事业","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4561":"索罗斯持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","IE00BD4GTT62.SGD":"Legg Mason ClearBridge Infrastructure Value A SGD-H (mdis) plus","2NVD.UK":"2X NVIDIA ETP","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC","ISBC":"投资者银行","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","BK4514":"搜索引擎","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC"},"translate_title":"投资者应该在英伟达Blackwell芯片推出之前买入该公司吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PEG":1,"NVDA":1,"ISBC":1,"INTC":0.6,"L":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"Nvidia's expected growth makes a strong argument for buying the stock today.\n\n\n\n\n\n\n\nBlackwell seems poised to deliver on the massive expectations set for it.\n\n\n\n\n\n\n\nThere are still risks -- watch the company's profit margins for signs of trouble.\n\nNvidia's (NVDA 2.18%) H100 chips became the go-to building block for artificial intelligence (AI) data centers powering models like OpenAI's ChatGPT. Technology's most prominent companies have bought hundreds of thousands of H100 chips, giving Nvidia the lion's share of the AI chip market.The H100's success fueled rampant growth and propelled the stock to a multitrillion-dollar valuation. Now, Nvidia is about to launch its Blackwell platform, its next-generation architecture that it expects will take AI technology to the next level.Should you buy Nvidia stock before Blackwell arrives in the coming weeks? Here is what you need to know.Nvidia could be a bargain if it remains atop the AI mountainAI completely changed Nvidia's trajectory, and it happened seemingly overnight. Revenue and the share price grew so fast that some investors might question whether this is sustainable or just a flash in the pan. Stated plainly, Nvidia must maintain strong chip demand and pricing power. If it does, the stock is arguably a bargain today.Sales momentum still looks healthy. The company's data center segment grew sales 154% year over year in the second quarter of its fiscal 2025, a 16% increase over the first quarter. Management guided for $32.5 billion in third-quarter revenue, representing nearly 80% year-over-year growth and an 8% increase from the second quarter.Growth is slowing, but it was bound to since the blistering rate last year creates increasingly challenging comparables to beat. But management said in its second-quarter earnings call that H100 demand is still growing. It also maintained that its gross margins will finish the fiscal year in the mid-70% range. Overwhelming AI demand has given Nivida pricing power that has boosted margins well beyond past levels:NVDA gross profit margin; data by YCharts.The margin guidance implies that Nvidia still enjoys pricing leverage. Declining margins would be a red flag since that would indicate potential problems like slowing demand or competitive pressure. That would also slow earnings growth, a problem for anyone who buys the stock today with the expectations of strong growth in the future.Shares trade at a forward price-to-earnings ratio of 41 times fiscal 2025 earnings and 29 times the following year's estimates, roughly six quarters out. Analysts believe the company will increase earnings by an average of 36% annually for the next three to five years, giving it a price/earnings-to-growth ratio (PEG) of just over 1.1. It's a solid argument that Nvidia remains a table-pounding buy, assuming growth stays on track.Blackwell's demand seems strongWhether the company can meet these high expectations over the next several years will depend on its upcoming Blackwell chip architecture, the successor to the H100. So far, it seems that the new chip is poised to deliver. Management said during the second-quarter call that Blackwell will enter production in the fourth quarter, soon enough to generate revenue before the fiscal year ends.What's important is that there is more demand than available supply. This, of course, bodes well for continued sales performance and supports the pricing leverage needed to maintain profit margins. The company gets an estimated 40% of its revenue from Meta Platforms, Microsoft, Alphabet, and Amazon. Thus far, these power spenders haven't indicated plans to withdraw from the AI arms race. Nvidia's management expects Blackwell demand to outpace supply into the next fiscal year.The underlying trend supporting all this growth is that more-advanced AI requires more code and data to build and train. As these models grow, they need increasing computing power to run them. Nvidia estimates that next-generation models will require 10 to 20 times more computing capacity. If so, old hardware could quickly fall behind.Should you buy the stock?It's fair to question the billions of dollars large tech companies spend on AI, but so much is at stake. For cloud providers like Amazon and Microsoft, integrating AI is part of protecting and growing their cloud businesses. Alphabet's CEO has stated that the risk of underinvesting in AI and falling behind competitors outweighs the risk of overspending.Plus, the competition has struggled to break Nvidia's stranglehold on the AI chip market. Intel set out to reestablish itself in the chip industry but has struggled to the point that acquisition rumors are swirling. Right now, the path forward looks clear. Nvidia seems poised to deliver on admittedly high expectations over the next 18 months, which justifies buying the stock as Blackwell is prepared for launch.However, a word of caution: It's unclear whether the company can indefinitely sell this many chips at such high margins. It depends on these power spenders, and big tech companies could eventually tire of shelling out the cash to buy all these chips and instead seek alternatives. You should approach Nvidia as a higher-risk stock even if the fundamentals say it's a strong buy today.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Product Release","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":353690476917024,"gmtCreate":1727389873390,"gmtModify":1727400508745,"author":{"id":"4180324985953582","authorId":"4180324985953582","authorIdStr":"4180324985953582","name":"Liquidmethod","avatar":"https://community-static.tradeup.com/news/d14002fce293ac27e55c75d9f4bad617","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4180324985953582"},"htmlText":"Nvda black well launch&nbsp;","listText":"Nvda black well launch&nbsp;","text":"Nvda black well launch","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/353690476917024","repostId":2470789352,"repostType":2,"repost":{"id":"2470789352","pubTimestamp":1727347500,"share":"https://ttm.financial/m/news/2470789352?lang=&edition=fundamental","pubTime":"2024-09-26 18:45","market":"us","language":"en","title":"Should Investors Load Up on Nvidia Before Its Blackwell Chip Launches?","url":"https://stock-news.laohu8.com/highlight/detail?id=2470789352","media":"Motley Fool","summary":"The market is banking on Nvidia's next-generation chips to deliver the growth needed to keep the stock upright.","content":"<html><body><ul>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>Nvidia's expected growth makes a strong argument for buying the stock today.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>Blackwell seems poised to deliver on the massive expectations set for it.</div>\n</li>\n<li>\n<div>\n<svg fill=\"none\" height=\"15\" viewbox=\"0 0 14 15\" width=\"14\" xmlns=\"http://www.w3.org/2000/svg\">\n<path d=\"M14 5.58984C14 2.91016 11.8398 0.75 9.16016 0.75C6.50781 0.777344 4.375 2.91016 4.375 5.5625C4.375 6.10938 4.45703 6.60156 4.59375 7.09375L0.191406 11.4961C0.0546875 11.6328 0 11.7969 0 11.9609V14.0938C0 14.4766 0.273438 14.75 0.65625 14.75H3.71875C4.07422 14.75 4.375 14.4766 4.375 14.0938V13H5.46875C5.82422 13 6.125 12.7266 6.125 12.3438V11.25H7.13672C7.30078 11.25 7.51953 11.168 7.62891 11.0312L8.28516 10.293C8.55859 10.3477 8.85938 10.375 9.1875 10.375C11.8398 10.375 14 8.24219 14 5.58984ZM9.1875 4.25C9.1875 3.53906 9.76172 2.9375 10.5 2.9375C11.2109 2.9375 11.8125 3.53906 11.8125 4.25C11.8125 4.98828 11.2109 5.5625 10.5 5.5625C9.76172 5.5625 9.1875 4.98828 9.1875 4.25Z\" fill=\"#FFB81C\"></path>\n</svg>\n</div>\n<div>There are still risks -- watch the company's profit margins for signs of trouble.</div>\n</li>\n</ul><div><p><strong>Nvidia</strong>'s <span>(NVDA<span> 2.18%</span>)</span> H100 chips became the go-to building block for artificial intelligence (AI) data centers powering models like OpenAI's ChatGPT. Technology's most prominent companies have bought hundreds of thousands of H100 chips, giving Nvidia the lion's share of the AI chip market.</p><p>The H100's success fueled rampant growth and propelled the stock to a multitrillion-dollar valuation. Now, Nvidia is about to launch its Blackwell platform, its next-generation architecture that it expects will take AI technology to the next level.</p><p>Should you buy Nvidia stock before Blackwell arrives in the coming weeks? Here is what you need to know.</p><h2>Nvidia could be a bargain <em>if</em> it remains atop the AI mountain</h2><p>AI completely changed Nvidia's trajectory, and it happened seemingly overnight. Revenue and the share price grew so fast that some investors might question whether this is sustainable or just a flash in the pan. Stated plainly, Nvidia must maintain strong chip demand and pricing power. If it does, the stock is arguably a bargain today.</p><p>Sales momentum still looks healthy. The company's data center segment grew sales 154% year over year in the second quarter of its fiscal 2025, a 16% increase over the first quarter. Management guided for $32.5 billion in third-quarter revenue, representing nearly 80% year-over-year growth and an 8% increase from the second quarter.</p><div><div><div></div></div></div><p>Growth is slowing, but it was bound to since the blistering rate last year creates increasingly challenging comparables to beat. But management said in its second-quarter earnings call that H100 demand is still growing. It also maintained that its gross margins will finish the fiscal year in the mid-70% range. Overwhelming AI demand has given Nivida pricing power that has boosted margins well beyond past levels:</p><p><img src=\"https://media.ycharts.com/charts/955d71c8fa1796387fb27635d59f2f23.png\"/></p><p>NVDA gross profit margin; data by YCharts.</p><p>The margin guidance implies that Nvidia still enjoys pricing leverage. Declining margins would be a red flag since that would indicate potential problems like slowing demand or competitive pressure. That would also slow earnings growth, a problem for anyone who buys the stock today with the expectations of strong growth in the future.</p><p>Shares trade at a forward price-to-earnings ratio of 41 times fiscal 2025 earnings and 29 times the following year's estimates, roughly six quarters out. Analysts believe the company will increase earnings by an average of 36% annually for the next three to five years, giving it a price/earnings-to-growth ratio (PEG) of just over 1.1. It's a solid argument that Nvidia remains a table-pounding buy, assuming growth stays on track.</p><div><div><div></div></div></div><h2>Blackwell's demand seems strong</h2><p>Whether the company can meet these high expectations over the next several years will depend on its upcoming Blackwell chip architecture, the successor to the H100. So far, it seems that the new chip is poised to deliver. Management said during the second-quarter call that Blackwell will enter production in the fourth quarter, soon enough to generate revenue before the fiscal year ends.</p><p>What's important is that there is more demand than available supply. This, of course, bodes well for continued sales performance and supports the pricing leverage needed to maintain profit margins. The company gets an estimated 40% of its revenue from <strong><a href=\"https://laohu8.com/S/META\">Meta Platforms</a></strong>, <strong>Microsoft</strong>, <strong>Alphabet</strong>, and <strong>Amazon</strong>. Thus far, these power spenders haven't indicated plans to withdraw from the AI arms race. Nvidia's management expects Blackwell demand to outpace supply into the next fiscal year.</p><p>The underlying trend supporting all this growth is that more-advanced AI requires more code and data to build and train. As these models grow, they need increasing computing power to run them. Nvidia estimates that next-generation models will require 10 to 20 times more computing capacity. If so, old hardware could quickly fall behind.</p><div><app :collapse_on_load=\"false\" :instrument_id=\"204770\" :show_benchmark_compare=\"false\" amount_change=\"2.64\" average_volume=\"326,806,093\" company_name=\"Nvidia\" current_price=\"123.51\" daily_high=\"124.94\" daily_low=\"121.61\" default_period=\"FiveYear\" dividend_yield=\"0.02%\" exchange=\"NASDAQ\" fifty_two_week_high=\"140.76\" fifty_two_week_low=\"39.23\" gross_margin=\"75.98\" logo=\"https://g.foolcdn.com/art/companylogos/mark/NVDA.png\" market_cap=\"$3,030B\" pe_ratio=\"57.99\" percent_change=\"2.18\" symbol=\"NVDA\" volume=\"2,655,657\"></app></div><h2>Should you buy the stock?</h2><p>It's fair to question the billions of dollars large tech companies spend on AI, but so much is at stake. For cloud providers like Amazon and Microsoft, integrating AI is part of protecting and growing their cloud businesses. Alphabet's CEO has stated that the risk of underinvesting in AI and falling behind competitors outweighs the risk of overspending.</p><div><div><div></div></div></div><p>Plus, the competition has struggled to break Nvidia's stranglehold on the AI chip market. <strong>Intel</strong> set out to reestablish itself in the chip industry but has struggled to the point that acquisition rumors are swirling. Right now, the path forward looks clear. Nvidia seems poised to deliver on admittedly high expectations over the next 18 months, which justifies buying the stock as Blackwell is prepared for launch.</p><p>However, a word of caution: It's unclear whether the company can indefinitely sell this many chips at such high margins. It depends on these power spenders, and big tech companies could eventually tire of shelling out the cash to buy all these chips and instead seek alternatives. You should approach Nvidia as a higher-risk stock even if the fundamentals say it's a strong buy today.</p><div></div></div></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should Investors Load Up on Nvidia Before Its Blackwell Chip Launches?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould Investors Load Up on Nvidia Before Its Blackwell Chip Launches?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-26 18:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nvidia's expected growth makes a strong argument for buying the stock today.\n\n\n\n\n\n\n\nBlackwell seems poised to deliver on the massive expectations set for it.\n\n\n\n\n\n\n\nThere are still risks -- watch the ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F791456%2Fai-data-center-chip.jpg&op=resize&w=165&h=104","relate_stocks":{"LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","BK4516":"特朗普概念","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0724617625.USD":"BGF GLOBAL ALLOCATION \"A4\" (USD) INC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","INTC":"英特尔","BK4567":"ESG概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","IE00BD4GTW91.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) INC","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","BK4566":"资本集团","BK4587":"ChatGPT概念","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","BK4077":"互动媒体与服务","L":"洛斯公司","3NVD.UK":"LS 3X NVIDIA","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","NVDA":"英伟达","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","PEG":"公务集团","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","BK4208":"复合型公用事业","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4561":"索罗斯持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","IE00BD4GTT62.SGD":"Legg Mason ClearBridge Infrastructure Value A SGD-H (mdis) plus","2NVD.UK":"2X NVIDIA ETP","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0130518102.USD":"HARRIS ASSOCIATES GLOBAL EQUITY \"R\" INC","ISBC":"投资者银行","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","BK4514":"搜索引擎","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC"},"source_url":"https://www.fool.com/investing/2024/09/26/should-investors-load-up-nvidia-before-blackwell/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2470789352","content_text":"Nvidia's expected growth makes a strong argument for buying the stock today.\n\n\n\n\n\n\n\nBlackwell seems poised to deliver on the massive expectations set for it.\n\n\n\n\n\n\n\nThere are still risks -- watch the company's profit margins for signs of trouble.\n\nNvidia's (NVDA 2.18%) H100 chips became the go-to building block for artificial intelligence (AI) data centers powering models like OpenAI's ChatGPT. Technology's most prominent companies have bought hundreds of thousands of H100 chips, giving Nvidia the lion's share of the AI chip market.The H100's success fueled rampant growth and propelled the stock to a multitrillion-dollar valuation. Now, Nvidia is about to launch its Blackwell platform, its next-generation architecture that it expects will take AI technology to the next level.Should you buy Nvidia stock before Blackwell arrives in the coming weeks? Here is what you need to know.Nvidia could be a bargain if it remains atop the AI mountainAI completely changed Nvidia's trajectory, and it happened seemingly overnight. Revenue and the share price grew so fast that some investors might question whether this is sustainable or just a flash in the pan. Stated plainly, Nvidia must maintain strong chip demand and pricing power. If it does, the stock is arguably a bargain today.Sales momentum still looks healthy. The company's data center segment grew sales 154% year over year in the second quarter of its fiscal 2025, a 16% increase over the first quarter. Management guided for $32.5 billion in third-quarter revenue, representing nearly 80% year-over-year growth and an 8% increase from the second quarter.Growth is slowing, but it was bound to since the blistering rate last year creates increasingly challenging comparables to beat. But management said in its second-quarter earnings call that H100 demand is still growing. It also maintained that its gross margins will finish the fiscal year in the mid-70% range. Overwhelming AI demand has given Nivida pricing power that has boosted margins well beyond past levels:NVDA gross profit margin; data by YCharts.The margin guidance implies that Nvidia still enjoys pricing leverage. Declining margins would be a red flag since that would indicate potential problems like slowing demand or competitive pressure. That would also slow earnings growth, a problem for anyone who buys the stock today with the expectations of strong growth in the future.Shares trade at a forward price-to-earnings ratio of 41 times fiscal 2025 earnings and 29 times the following year's estimates, roughly six quarters out. Analysts believe the company will increase earnings by an average of 36% annually for the next three to five years, giving it a price/earnings-to-growth ratio (PEG) of just over 1.1. It's a solid argument that Nvidia remains a table-pounding buy, assuming growth stays on track.Blackwell's demand seems strongWhether the company can meet these high expectations over the next several years will depend on its upcoming Blackwell chip architecture, the successor to the H100. So far, it seems that the new chip is poised to deliver. Management said during the second-quarter call that Blackwell will enter production in the fourth quarter, soon enough to generate revenue before the fiscal year ends.What's important is that there is more demand than available supply. This, of course, bodes well for continued sales performance and supports the pricing leverage needed to maintain profit margins. The company gets an estimated 40% of its revenue from Meta Platforms, Microsoft, Alphabet, and Amazon. Thus far, these power spenders haven't indicated plans to withdraw from the AI arms race. Nvidia's management expects Blackwell demand to outpace supply into the next fiscal year.The underlying trend supporting all this growth is that more-advanced AI requires more code and data to build and train. As these models grow, they need increasing computing power to run them. Nvidia estimates that next-generation models will require 10 to 20 times more computing capacity. If so, old hardware could quickly fall behind.Should you buy the stock?It's fair to question the billions of dollars large tech companies spend on AI, but so much is at stake. For cloud providers like Amazon and Microsoft, integrating AI is part of protecting and growing their cloud businesses. Alphabet's CEO has stated that the risk of underinvesting in AI and falling behind competitors outweighs the risk of overspending.Plus, the competition has struggled to break Nvidia's stranglehold on the AI chip market. Intel set out to reestablish itself in the chip industry but has struggled to the point that acquisition rumors are swirling. Right now, the path forward looks clear. Nvidia seems poised to deliver on admittedly high expectations over the next 18 months, which justifies buying the stock as Blackwell is prepared for launch.However, a word of caution: It's unclear whether the company can indefinitely sell this many chips at such high margins. It depends on these power spenders, and big tech companies could eventually tire of shelling out the cash to buy all these chips and instead seek alternatives. You should approach Nvidia as a higher-risk stock even if the fundamentals say it's a strong buy today.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.1","shortVersion":"4.28.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2470789352"}