NVIDIA Corp (NVDA) stock soared 5.73% in the last 24 hours, closing at $141.98 on Monday. The strong rally came amid growing excitement over the company's upcoming Q3 earnings release scheduled for Wednesday, November 20, 2024.
Investors are eagerly anticipating NVIDIA's quarterly results, as the company is expected to report robust growth driven by surging demand for its artificial intelligence (AI) chips. The AI chip segment has been a key growth driver for NVIDIA, fueling the company's meteoric rise in recent years.
AI Chip Demand Fueling Growth
The rapid adoption of AI technology across various industries has led to an insatiable appetite for NVIDIA's high-performance AI chips. Major tech giants and cloud computing providers, such as Meta, Alphabet, Amazon, and Microsoft, have been investing heavily in building massive data centers to support their AI capabilities. This has translated into a significant revenue stream for NVIDIA, as these companies rely on its advanced GPU solutions to power their AI workloads.
Blackwell Chip Launch in Focus
One of the key catalysts driving investor excitement is the anticipated launch of NVIDIA's next-generation Blackwell chip. The Blackwell GPU architecture is expected to deliver a substantial performance boost, further solidifying NVIDIA's dominance in the AI chip market.
According to industry analysts, the Blackwell chip is already in high demand, with reports suggesting that NVIDIA's production capacity for the new chip is fully booked for the next 12 months following its launch. This strong preorder momentum has fueled optimism among investors, who expect the Blackwell chip to contribute significantly to NVIDIA's revenue growth in the coming quarters.
Earnings Expectations
For the fiscal third quarter of 2025, analysts expect NVIDIA to report earnings of $0.74 per share, representing an impressive 86% year-over-year growth. Revenue is projected to reach a staggering $33.1 billion, up a remarkable 83% compared to the same period last year.
Given the robust demand for NVIDIA's AI chips and the anticipated success of the Blackwell chip launch, many analysts believe that the company may surpass these already lofty expectations. A strong earnings beat and an optimistic outlook for the fourth quarter could further propel NVIDIA's stock higher, solidifying its position as a leader in the AI revolution.
