The Bottom Line:
- Nvidia anticipates significant revenue from its new AI chip, Blackwell, in the fourth quarter and full year.
- Blackwell is designed for large AI models and generative AI, offering compatibility with various data center configurations.
- Nvidia’s recent earnings report highlights robust demand for AI chips, with a staggering $26.4 billion in revenue and $14.88 billion in net income for the quarter.
- The stock has surged past $1,000, with a 10-to-1 stock split reflecting strong investor confidence and market enthusiasm.
- Nvidia’s strategic innovations and diversified portfolio continue to dominate the AI sector, promising sustained future growth.
Nvidia’s Groundbreaking AI Chip Blackwell: A New Era of Revenue
Nvidia’s Blackwell Chip: Advancing AI Technology
you also said on the call we will see a lot of Blackwell Revenue this year so if we’re looking at about $28 billion in Revenue in the current quarter and Blackwell is a more expensive product than Hopper the chip series out now what does that imply about Revenue in the fourth quarter and for the full year well it should be significant you have Blackwell Blackwell and and as you know we guide one quarter at a time and but what I what I could tell about about black Wells this this is this is um a a giant leap in in um uh in Ai and it was designed for trillion parameter AI models and this is as you know we’re already at two trillion parameters uh models sizes are growing about doubling every 6 months and the amount of processing uh between the size of the model the amount of data is growing four times and so the ability for uh these data centers to keep up with these large models really depends on the technology that we bring bring to them and so the Blackwell is is uh designed uh also for incredibly fast inferencing and inference used to be about recognition of things but now inferencing as you know is about generation of information generative Ai and so whenever you’re talking to chat GPT and it’s generating information for you or drawing a picture for you or recognizing something and then drawing something for you that that generation is a brand new uh inferencing technology is really really complicated and requires a lot of performance and so Blackwell is designed for large models for generative Ai and we designed it to fit into any data center and so it’s air cooled liquid cooled x86 or this new revolutionary processor we designed called Grace Grace blackwall Superchip and then um I you know supports uh infinite ban data centers like we used to but we also now support a brand new type of data center ethernet we’re going to bring AI to ethernet data centers so the number of ways that you could deploy Blackwell is way way higher than than Hopper generation so I’m excited about that we’re at the beginning of a new Industrial Revolution production of energy through Steam production of electricity it and information revolution with PC and internet then now artificial intelligence uh we are experiencing two simult anous uh Transitions and this has never happened before in a stunting Market move nvidia’s shares soared past the $1,000 marked for the first time propelled by a Sal surge driven by groundbreaking advancements in artificial intelligence this leap comes after an extraordinary fiscal first quarter performance where the tech giant not only smashed analyst estimates but also set a new precedent for investor expectations in the AI sector being a critical indicator of the AI boom’s momentum nvidia’s recent earnings report revealed a robust demand for AI chips this sector’s vibrancy is evident as Nvidia plans to introduce revenue from its revolutionary Next Generation AI chip named as Blackwell later this year the anticipation surrounding Blackwell is high with expectation that will significantly enhance AI capabilities in data centers by the fourth quarter highlighting a pivotal moment in AI technology deployment this surge in nvidia’s stock value is not merely a reflection of current success but an indic Ator of sustained future growth nvidia’s strategic decision to execute a 10 to1 stock split mirrors its confidence in maintaining this upward trajectory the stock surge suggests that the stock is poised to open an unprecedented highs which further indicates robust investor confidence and Market enthusiasm delving into the specifics Nvidia reported a staggering 26.4 billion in Revenue surpassing the $24.65 billion anticipated by analy lists this financial proess is underpinned by a record net income of $14.88 billion for the quarter a stark contrast to the $ 2.04 billion reported in the same period last year such Financial Health is critical as it reflects nvidia’s effective capitalization on the burgeoning demand for high performance Computing and AI a Cornerstone of nvidia’s meteor rise is its dominance in the data Setter sales category which witnessed an astounding 42 7% increase from the previous year to$ 22.6 billion this sector fued by shipments of nvidia’s Hopper Graphics processors including the formidable h100 GPU is crucial for AI operations the notable deployment of 24,800 gpus by meta for their llama 3 language model underscores the scale and impact of nidia’s technology on leading AI initiatives nvidia’s influence extends Beyond traditional Computing its networking Revenue has also seen a three-fold increase primarily driven by its infin band products these are vital for constructing extensive networks of interconnected AI systems emphasizing the growing demand for more sophisticated AI infrastructure moreover nvidia’s continued Innovation is evident in its Diversified portfolio which includes significant gains in gaming and emerging sectors like automotive and professional visualization the company’s 18% growth in gaming Revenue attributed to robust demand complements its comprehensive approach to Market expansion and innovation in addition to these operational successes envious Financial strategies demonstrate a commitment to shareholder value the company has returned significant Capital to shareholders through $7.7 billion in stock BuyBacks and increased dividends which reflects a strategic approach to enhancing shareholder returns as Nvidia stands at the Forefront of the AI Revolution its trajectory suggests s not just growth but the shaping of future technology Landscapes the Strategic introductions of Technologies like the blackw GPU are set to further cement nvidia’s role as a pivotal player in the AI domain promising an exciting new chapter in the evolution of artificial intelligence and Computing Josh brown but why don’t you tell us as a long-standing shareholder of Nvidia how you’re thinking about this report tonight yeah I feel like I’ve grown up with Nvidia it’s like uh it’s it’s been with me for a long time uh look I I feel that this is so such a hard story believe it or not you you’re you’re up in this name you’re in this name for thousands of percentage points the problem what makes it harder normally when you have a stock that goes up this much you say to yourself okay it's an easy sale because the the the evaluation is caught up with the fundamentals oh look now it's outdone its fundamentals unfortunately Nvidia doesn't make it that easy for you it just has not outdone its fundamentals yet it could happen hasn't happened and here's the example that I want to give you in January of 2023 people were saying Nvidia is 45 times earnings the average semi is 18 it's too expensive we understand it's fast growing etc etc but it's up so much here's the problem Nvidia then returned 239 for the remainder of 2023 it's up another uh 93% this year so cumulatively it's up 540 since January of 2023 the the the at right the problem now is the stock is trading at a lower multiple it's 34 times earning so it's it's really a difficult stock to belong I say that tongue and cheek because of course it's the one of the most rewarding names in the history of the stock market but it doesn't get easier just because it's gone up it doesn't make it simpler to sell nvidia’s recent announcement of a 10 for one stock split is not just a financial maneuver but a strategic move that could significantly enhance investor sentiment and potentially ignite a stock rally drawing parallels from Tesla's previous stock splits which notably increase Market accessibility spur rallies Nvidia might experience a similar surge the logic behind this is grounded in the psychology of stock trading a lower per share price can make the stock appear more accessible and attractive to a broader range of investors potentially driving up demand although today's market allows for fractional share purchases the psychological impact of a lower stock price should not be underestimated this cheaper appearance can attract more retail investors who might have felt sidelined by higher stock prices such increased participation can lead to Greater liquidity and potentially higher stock prices furthermore the Strategic implications of a stock split extend beyond mere psychological effects nvidia’s split could pave the way for its inclusion in the Dow Jones Industrial Average a price weighted index that favors lower price stocks historical preceden such as Amazon's inclusion in the Dow post split suggest a potential increase in institutional demand for NVIDIA shares this inclusion would likely lead to significant buying activity from ETFs and other index tracking funds which will further fuel the rally the decision to increase the dividend by 150% posts split although still representing a low yield signal strong Financial Health and a commitment to returning value to shareholders this move could bolster investor confidence and support the bullish sentiment surrounding invidious stock in the coming months even if the split itself is not alter fundamental valuations the combined effect of improved Market perception and potential strategic benefits could create a favorable environment for Nvidia stock performance what is the current Dan Ives view on Nvidia it's the Godfather of AI Jens and Nvidia in other words this is the early part of this AI Revolution playing out 1995 moment not 1999 so when I look Nidia anytime you have the sell off you continue to own the stock because you look at Nidia Microsoft now this AI title w”.
Unparalleled Compatibility: Blackwell’s Versatility in Data Centers
**Unparalleled Compatibility in Data Centers**
Blackwell’s versatility in data centers is a significant advancement for AI technology. The chip is designed for trillion parameter AI models, addressing the growing size and complexity of AI models. Blackwell excels in generative AI, enabling tasks like information generation and image creation. Its design allows for seamless integration into various data center setups, including air-cooled, liquid-cooled, x86, and the new Grace blackwall Superchip processor. In addition to traditional data centers, Blackwell also supports ethernet data centers, expanding its deployment possibilities significantly.
**Enhanced Performance for Large Models**
Blackwell’s primary focus on large models and generative AI sets it apart from previous chip generations. With AI models doubling in size every six months and the demand for processing power increasing fourfold, Blackwell’s fast inferencing capabilities are crucial for keeping up with evolving AI requirements. This chip represents a major leap forward in AI technology and is tailored to meet the performance demands of modern AI applications.
**Broad Deployment Capabilities**
One of Blackwell’s key strengths lies in its compatibility with a wide range of data center configurations. Whether it’s traditional setups or newer ethernet-based centers, Blackwell is designed to seamlessly integrate and enhance AI capabilities across different environments. This flexibility in deployment options positions Blackwell as a versatile and powerful solution for organizations looking to harness cutting-edge AI technologies within their data centers.
Astounding Earnings Highlight Soaring Demand for AI Technology
**Blackwell’s Versatile Integration into Data Centers**
Blackwell’s adaptability within data centers represents a significant progression in AI technology. Tailored for trillion parameter AI models, it tackles the expanding complexity of AI models. Blackwell excels in generative AI tasks, facilitating functions like information generation and image rendering. Its design enables seamless integration into various data center setups, including air-cooled, liquid-cooled, x86, and the innovative Grace Blackwell Superchip processor. Moreover, aside from conventional data centers, Blackwell extends its support to ethernet data centers, broadening its deployment horizons considerably.
**Optimized Performance for Complex Models**
The primary emphasis of Blackwell on large models and generative AI distinguishes it from earlier chip iterations. With AI models doubling in size every six months and the demand for processing power escalating fourfold, Blackwell’s high-speed inferencing capabilities play a critical role in meeting the evolving demands of AI applications. This chip marks a substantial advancement in AI technology and is finely tuned to cater to the performance requirements of contemporary AI tasks.
**Diverse Deployment Flexibility**
A standout feature of Blackwell lies in its compatibility with a wide array of data center configurations. Whether for traditional setups or cutting-edge ethernet-based centers, Blackwell is engineered to seamlessly integrate and enrich AI capabilities across various environments. This versatility in deployment options positions Blackwell as a dynamic and potent solution for organizations seeking to leverage state-of-the-art AI technologies within their data centers.
$1,000 Stock Surge and Split: Investor Confidence at an All-Time High
**Unparalleled Compatibility: Blackwell’s Versatility in Data Centers**
Blackwell’s versatility in data centers is a significant advancement for AI technology. The chip is designed for trillion parameter AI models, addressing the growing size and complexity of AI models. Blackwell excels in generative AI, enabling tasks like information generation and image creation. Its design allows for seamless integration into various data center setups, including air-cooled, liquid-cooled, x86, and the new Grace blackwall Superchip processor. In addition to traditional data centers, Blackwell also supports ethernet data centers, expanding its deployment possibilities significantly.
**Enhanced Performance for Large Models**
Blackwell’s primary focus on large models and generative AI sets it apart from previous chip generations. With AI models doubling in size every six months and the demand for processing power increasing fourfold, Blackwell’s fast inferencing capabilities are crucial for keeping up with evolving AI requirements. This chip represents a major leap forward in AI technology and is tailored to meet the performance demands of modern AI applications.
**Broad Deployment Capabilities**
One of Blackwell’s key strengths lies in its compatibility with a wide range of data center configurations. Whether it’s traditional setups or newer ethernet-based centers, Blackwell is designed to seamlessly integrate and enhance AI capabilities across different environments. This flexibility in deployment options positions Blackwell as a versatile and powerful solution for organizations looking to harness cutting-edge AI technologies within their data centers.
Nvidia’s Strategic Innovations Promise Sustained Future Growth
**Enhanced Performance and Versatility of Blackwell in Data Centers**
Blackwell’s adaptability within data centers represents a significant progression in AI technology. Tailored for trillion parameter AI models, it tackles the expanding complexity of AI models. Blackwell excels in generative AI tasks, facilitating functions like information generation and image rendering. Its design enables seamless integration into various data center setups, including air-cooled, liquid-cooled, x86, and the innovative Grace Blackwell Superchip processor. Moreover, aside from conventional data centers, Blackwell extends its support to ethernet data centers, broadening its deployment horizons considerably.
**Optimized Performance for Complex AI Models**
The primary emphasis of Blackwell on large models and generative AI distinguishes it from earlier chip iterations. With AI models doubling in size every six months and the demand for processing power escalating fourfold, Blackwell’s high-speed inferencing capabilities play a critical role in meeting the evolving demands of AI applications. This chip marks a substantial advancement in AI technology and is finely tuned to cater to the performance requirements of contemporary AI tasks.
**Diverse Deployment Capabilities of Blackwell**
A standout feature of Blackwell lies in its compatibility with a wide array of data center configurations. Whether for traditional setups or cutting-edge ethernet-based centers, Blackwell is engineered to seamlessly integrate and enrich AI capabilities across various environments. This versatility in deployment options positions Blackwell as a dynamic and potent solution for organizations seeking to leverage state-of-the-art AI technologies within their data centers.
