Jensen Huang says artificial intelligence is advancing at an “incredible speed.” Where will Nvidia stock be in 1 year?
Nvidia (NASDAQ: NVDA)maker of the world’s most powerful artificial intelligence (AI) chips, has been at the forefront of the AI revolution. Customers have flocked to these high-end graphics processing units (GPUs) for the critical AI tasks of model training and inference. Therefore, Nvidia plays a key role in helping users in the earliest stages of their AI journey.
On top of that, the company has developed an entire portfolio of AI products and services to accompany users through every stage of their AI programs. All of this has helped the tech giant achieve double- and triple-digit quarterly revenues in recent years and driven revenues to record levels. And Nvidia, maintaining a gross margin above 70%, achieved strong sales profitability.
The great news is that this success story may be far from over. Nvidia CEO Jensen Huang, speaking at CES earlier this month, said AI is advancing at an “unbelievable rate.” With this in mind, where will Nvidia’s stock be in a year? Let’s find out.
First, let’s consider the story so far. Nvidia got involved early in AI, establishing itself as a major player for any company interested in setting up the program. In the beginning, the tech powerhouse was known for its GPUsbut quickly expanded to include a range of products and services, from networking equipment to business software. It has even developed expertise in various industries, such as healthcare and automotive, to offer specific platforms tailored to their needs.
Nvidia benefited as data centers launched upgrades, demanding new GPUs, and companies dipped into AI, training models or seed project development.
Now let’s look to the future. Nvidia should continue to benefit from these trends, as they are far from over. Huang said there are about $1 trillion in obsolete computers around the world — and they need to be upgraded for accelerated computing. It’s also important to note that most companies that have begun to incorporate AI into their operations still have a long way to go — offering Nvidia an ongoing revenue opportunity.
For example, the next wave of artificial intelligence growth may be agentic artificial intelligence, or the development of artificial intelligence software to consider complex problems, reason, find solutions, and apply those solutions. Nvidia is launching blueprints that make it easy for users to design their own AI agents — and Nvidia partners have also created blueprints that integrate with Nvidia software.
Over the course of next year, we should expect the full unveiling of Nvidia’s long-awaited Blackwell architecture, a fully customizable platform with seven different chips, more networking options, and more. The production ramp is happening now, in the fourth quarter of the current fiscal year, and Nvidia expects billions of dollars in revenue from Blackwell during this period.
