Nvidia is poised to become the first $4 trillion company, fueled by its dominance of ai. As the ai chip maker prepares to report fiscal third-quarter earnings, expectations are high for another standout performance. Analysts anticipate revenue of $2 billion and strong future guidance, which could further solidify investor confidence.
Wedbush highlights Nvidia's leadership in ai capital spending, forecasting more than $1 trillion in spending tied to its GPUs, which it describes as “the new oil and gold.” The company's Blackwell chips are expected to play a key role, and the momentum in demand and production indicates strong growth potential. CEO Jensen Huang's comment during the earnings conference call is likely to underscore this bullish outlook.
The broader market context also supports Nvidia's trajectory. Recent ai-related results from Microsoft, amazon and Google demonstrate strong demand for the cloud, strengthening the case for sustained investment in ai. Analysts point to a favorable macroeconomic backdrop, including a potential Federal Reserve rate cut cycle and an easing of regulatory pressures, as factors that could further boost tech stocks.
Wedbush's projection extends to 2025, with Nvidia positioned at the forefront of the ai revolution. They believe the market continues to underestimate the demand curve for ai-powered technologies, underscoring Nvidia's path toward its record valuation goal.
Nvidia Stock Chart Analysis
Chip stocks are down 3% since the election. Meanwhile, the S&P 500 has risen by about the same amount.
Nvidia has rebounded strongly since its July drop, rising 45% from August's major low. The chip stock, which is up nearly 200% this year and more than 1,100% over the past two years, hit record highs after the election.
But many of Nvidia's peers, especially the smaller ones, have become a net drag on the industry and U.S. stocks have soared since the start of the second half of the year.
Shares of chipmaker Nvidia were steady in premarket trading ahead of the release of its long-awaited third-quarter results after the bell on Wednesday.
Nvidia has become a benchmark for measuring the strength of the global push in ai, and demand for its chips as an enabler of this trend continues to drive the company's stock. Shares are up 197% so far this year, and Nvidia recently overtook Apple to become the world's most valuable company, with a market capitalization of $3.6 trillion (£2.8 trillion ).
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