Jensen Huang: AI Demand Set to Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 38 minutes ago
0mins
Source: NASDAQ.COM
- AI Investment Boom: Jensen Huang reiterated at Dell Technologies World that a massive AI investment boom is underway, indicating a rapid increase in market demand for AI technologies, which could drive up valuations of related stocks.
- Demand Forecast: Huang suggested that we have entered the era of useful AI, predicting an 'utterly parabolic' growth trend in demand, which implies that future demand for Nvidia's products will continue to rise sharply, potentially enhancing the company's market share significantly.
- Cloud GPU Supply Situation: Nvidia sold out its entire 2026 supply of cloud GPUs before the end of 2025, demonstrating strong market demand for its products, and Huang's predictions further emphasize this, suggesting that future growth potential far exceeds current valuations.
- Investment Advice: Despite Nvidia's significant growth potential, analysts have identified 10 stocks as better investment choices, cautioning investors to be prudent in their decisions and avoid following trends blindly.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 223.470
Low
200.00
Averages
264.97
High
352.00
Current: 223.470
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Data Center Performance: Data Center revenues rose 92% year-over-year to $75.2 billion, primarily driven by Blackwell adoption, indicating rapid expansion of demand for NVIDIA's AI infrastructure, particularly in edge computing and enterprise deployments.
- New Market Platform Strategy: NVIDIA is restructuring its market into Data Center and Edge Computing, with further segmentation of Data Center revenues into Hyperscale and ACIE, reflecting a deeper understanding of AI applications across diverse environments and strategic adjustments that are expected to drive future growth.
- Cash Flow and Shareholder Returns: Free cash flow reached a record $48.6 billion, with NVIDIA returning approximately $20 billion to shareholders in the quarter and raising its quarterly dividend from $0.01 to $0.25, showcasing the company's strong cash generation capabilities and commitment to shareholders.
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- Nvidia's Tepid Response: Nvidia reported $81.6 billion in quarterly revenue and provided a $91 billion guidance, yet its stock fell about 1.7%, indicating that even stellar results fail to meet sky-high market expectations, affecting the S&P 500 and Nasdaq performance.
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- Increased Market Volatility: Following a week of unpredictable trading, investors face dual pressures from high gas prices and ongoing uncertainty, yet long-term investors are advised to remain patient and diversified, as short-term fluctuations do not alter the fundamental value of quality companies.
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Jensen Huang: AI Investment Boom Accelerating
- AI Investment Surge: Jensen Huang emphasized at Dell Technologies World that a massive AI investment boom is underway, indicating a rapid increase in market demand for AI infrastructure, which could drive stock prices of related companies higher.
- Era of Useful AI: He stated, “We have now arrived at the era of useful AI,” suggesting that the practical value of AI is significantly increasing, indicating that more businesses and industries will benefit from widespread AI technology applications in the future.
- Demand Growth Expectations: Huang noted that although Nvidia has sold out its entire 2026 supply of cloud GPUs, he anticipates demand will continue to grow in a “parabolic” manner, implying sustained increases in demand for AI processors, which may attract investor attention.
- Investment Opportunity: If Huang's predictions hold true, the growth potential for Nvidia and other AI-related stocks will far exceed current valuations, prompting investors to consider entering the market before prices rise further to capitalize on this potential investment opportunity.
See More
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- Strong Revenue Performance: Nvidia generated nearly $82 billion in revenue for Q1, showcasing its robust competitive position and sustained growth potential, which is expected to further drive stock price appreciation.
- Continued Growth Momentum: Despite changing market conditions, Nvidia shows no signs of slowing down, indicating strong product demand that may attract more investor interest.
- Increased Investor Confidence: With steady revenue growth, analysts maintain an optimistic outlook on Nvidia's future performance, suggesting that its stock holds significant investment value in the current market.
- Broad Market Prospects: Nvidia's impressive earnings report not only reflects its leadership in the technology sector but also provides funding support for future expansion and innovation, further solidifying its market share.
See More
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- Manufacturing Expansion: The May S&P manufacturing PMI unexpectedly rose by 0.8 to 55.3, surpassing expectations of 53.8, marking the strongest pace of expansion in four years, which could drive investment and growth in related sectors.
- Oil Price Volatility: WTI crude oil prices retreated after an initial 4% gain, influenced by market reactions to the situation in Iran, highlighting the uncertainty in the energy market that may impact the overall economy.
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See More
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- Significant Revenue Growth: NVIDIA's Q1 revenues surged 85% year-over-year to $81.6 billion, exceeding market expectations of $78.4 billion, demonstrating the company's robust performance amid soaring AI demand and solidifying its market leadership.
- Strong Data Center Performance: Data Center revenues rose 92% year-over-year to $75.2 billion, primarily driven by Blackwell adoption, indicating rapid expansion of demand for NVIDIA's AI infrastructure, particularly in edge computing and enterprise deployments.
- New Market Platform Strategy: NVIDIA is restructuring its market into Data Center and Edge Computing, with further segmentation of Data Center revenues into Hyperscale and ACIE, reflecting a deeper understanding of AI applications across diverse environments and strategic adjustments that are expected to drive future growth.
- Cash Flow and Shareholder Returns: Free cash flow reached a record $48.6 billion, with NVIDIA returning approximately $20 billion to shareholders in the quarter and raising its quarterly dividend from $0.01 to $0.25, showcasing the company's strong cash generation capabilities and commitment to shareholders.
See More
Anthropic in Talks with Microsoft for AI Chip Adoption
- Collaboration Talks: Anthropic is in discussions with Microsoft to adopt the Maia 200 AI chip, although no deal has been signed yet; this potential partnership could help Microsoft close the gap with Amazon and Google in the cloud computing market.
- Computing Challenges: CEO Dario Amodei stated that Anthropic is facing difficulties with compute, highlighting an urgent need for more robust computing resources to support the increasing demand for its Claude assistant and Claude Code tool.
- Significant Investment Commitment: Microsoft announced a $5 billion investment in Anthropic last November, while Anthropic committed to spending $30 billion on Azure, further solidifying their partnership and financial ties.
- Chip Performance Advantage: Microsoft's Maia 200 chip offers over 30% improved tokens per dollar, providing Anthropic with a more cost-effective computing solution that will enhance the training and operation of its AI models.
See More
Market Volatility Amid Quantum Computing Surge
- Walmart's Earnings Warning: Walmart's stock dropped nearly 8% due to high fuel costs impacting margins, despite beating revenue expectations; this soft guidance weighs on both the Dow and Nasdaq, highlighting challenges faced by the retail sector amid rising costs.
- Nvidia's Tepid Response: Nvidia reported $81.6 billion in quarterly revenue and provided a $91 billion guidance, yet its stock fell about 1.7%, indicating that even stellar results fail to meet sky-high market expectations, affecting the S&P 500 and Nasdaq performance.
- Quantum Computing Gains: The Trump administration's $2 billion initiative to enhance domestic quantum capabilities led to an 8.4% surge in IBM's stock, while D-Wave Quantum and Rigetti Computing soared approximately 25%, showcasing the positive impact of government spending on emerging tech sectors.
- Increased Market Volatility: Following a week of unpredictable trading, investors face dual pressures from high gas prices and ongoing uncertainty, yet long-term investors are advised to remain patient and diversified, as short-term fluctuations do not alter the fundamental value of quality companies.
See More
Jensen Huang: AI Investment Boom Accelerating
- AI Investment Surge: Jensen Huang emphasized at Dell Technologies World that a massive AI investment boom is underway, indicating a rapid increase in market demand for AI infrastructure, which could drive stock prices of related companies higher.
- Era of Useful AI: He stated, “We have now arrived at the era of useful AI,” suggesting that the practical value of AI is significantly increasing, indicating that more businesses and industries will benefit from widespread AI technology applications in the future.
- Demand Growth Expectations: Huang noted that although Nvidia has sold out its entire 2026 supply of cloud GPUs, he anticipates demand will continue to grow in a “parabolic” manner, implying sustained increases in demand for AI processors, which may attract investor attention.
- Investment Opportunity: If Huang's predictions hold true, the growth potential for Nvidia and other AI-related stocks will far exceed current valuations, prompting investors to consider entering the market before prices rise further to capitalize on this potential investment opportunity.
See More
Nvidia Reports Nearly $82 Billion Revenue in Q1
- Strong Revenue Performance: Nvidia generated nearly $82 billion in revenue for Q1, showcasing its robust competitive position and sustained growth potential, which is expected to further drive stock price appreciation.
- Continued Growth Momentum: Despite changing market conditions, Nvidia shows no signs of slowing down, indicating strong product demand that may attract more investor interest.
- Increased Investor Confidence: With steady revenue growth, analysts maintain an optimistic outlook on Nvidia's future performance, suggesting that its stock holds significant investment value in the current market.
- Broad Market Prospects: Nvidia's impressive earnings report not only reflects its leadership in the technology sector but also provides funding support for future expansion and innovation, further solidifying its market share.
See More
US Stocks Edge Up as Economic Data Shows Stability
- Economic Stability: US weekly initial unemployment claims fell by 3,000 to 209,000, close to the expected 210,000, indicating stability in the labor market and boosting investor confidence in economic recovery.
- Manufacturing Expansion: The May S&P manufacturing PMI unexpectedly rose by 0.8 to 55.3, surpassing expectations of 53.8, marking the strongest pace of expansion in four years, which could drive investment and growth in related sectors.
- Oil Price Volatility: WTI crude oil prices retreated after an initial 4% gain, influenced by market reactions to the situation in Iran, highlighting the uncertainty in the energy market that may impact the overall economy.
- Corporate Earnings Performance: So far, 83% of the 466 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to climb 12% year-over-year, providing support for the stock market despite a slowdown in the tech sector.
See More
