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Nvidia CFO recognizes ‘tipping point’
Nvidia currently has an estimated 80% share of the AI-powered processor market.
The company used last month’s GTC event to announce the latest in its lineup, the Blackwell GPU architecture. This architecture could make it 40% more expensive than his current H100 chip, which costs between $30,000 and $40,000.
Related: Analysts reset AMD stock price target ahead of earnings
Nvidia is scheduled to report first-quarter earnings on May 22nd. Analysts surveyed by FactSet expect the company to post earnings of $5.60 per share and revenue of $24.75 billion.
A year ago, Nvidia posted earnings of $1.09 per share on revenue of $7.19 billion.
On February 21, NVIDIA met Wall Street’s fourth-quarter fiscal targets, posting triple-digit sales and profit growth for the third quarter.
“The world has reached a tipping point in a new era of computing,” said Nvidia Chief Financial Officer Colette Kress. told the analyst At the company’s financial results conference in February. “The installed base of $1 trillion data center infrastructure is rapidly shifting from general-purpose computing to accelerated computing.”
Kress said major cloud providers accounted for more than half of Nvidia’s data center revenue in the quarter, supporting internal workloads and external public cloud customers.
“We are pleased to see that the supply of hopper architecture products is improving,” she said. “Hopper demand remains very strong. We expect our next generation products to be supply constrained as demand far exceeds supply.”
Advanced Micro Devices (AMD) The company, which announced its earnings after the market closed on April 30, is seen as the only real rival to Nvidia’s global market dominance. Supply constraints to Nvidia could increase sales of AMD’s newly produced MI300X chips.
Mr. Huang, subject Recent “60 Minutes” Profile told analysts that overall “supply is improving.”
“Our supply chain has been doing a great job for us, of course for everything from wafers, packaging, memory, all the power regulators, to transceivers, networks, cables,” he said. Told.
Wall Street analysts cite ‘strong demand’
While some may think of Nvidia GPUs as chips, Huang said the Hopper GPU has 35,000 parts and weighs 70 pounds.
“There’s a good reason people call this an AI supercomputer,” Huang said. “If you look behind the scenes at a data center, the systems, the cabling systems, are mind-boggling. This is the densest, most complex network cabling the world has ever seen. It’s a system.
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Although Nvidia provides guidance quarterly at a time, Huang told analysts that “fundamentally, we have great conditions for continued growth in 24-25 and beyond.” ” he said.
“We now have a new type of data center around AI generation, an AI generation factory,” he said. “And you’ve heard me describe it as an AI factory, but basically it takes the raw material, which is data, and transforms it with an AI supercomputer that Nvidia is building. Turn it into an incredibly valuable token.”
UBS analyst Timothy Arcuri considered Blackwell when he raised his price target for Nvidia from $1,100 to $1,150, while giving the stock a “buy” rating.
Following the launch of Nvidia’s Blackwell, the analyst told investors in a research note that the company’s supply chain efforts could result in a much richer 2025 mix than the company expected. He said that it suggests.
Despite potential shipping timing concerns, the company emphasized continued strong demand for its Blackwell and Hopper products.
While Blackwell is expected to ship in December, UBS remains bullish on continued demand for the hopper, highlighting its strengths, especially ahead of a significant product transition.
Arcuri said the increase in Blackwell’s configuration requirements, driven by strong demand for GB200 server racks, signals a strategic shift for Nvidia to become a full-stack provider.
