Nvidia's Blackwell GPUs Sell Out Amid AI Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Surge in AI Demand: Nvidia's Blackwell GPUs have sold out due to unprecedented demand in the AI sector, indicating the company's strong performance in a rapidly growing market, which is expected to significantly boost future revenues.
- Accelerating Earnings: With sales accelerating, Nvidia's profitability is also improving, leading to more optimistic market expectations regarding its future financial performance, which could further drive stock price increases.
- Investment Recommendation Shift: Despite Nvidia's strong performance in AI, it was not included in the current top ten stocks recommended by The Motley Fool Stock Advisor, suggesting that investors should carefully assess potential risks and returns.
- Historical Return Comparison: Historically, Nvidia's recommendation in 2005 yielded a return of $1,133,548 on a $1,000 investment, showcasing its long-term investment potential, but the current market environment may differ from the past, warranting cautious consideration.
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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: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
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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See More
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- Policy Risks: While the opportunities in the Chinese market are significant, uncertainties surrounding government regulations and market access could impact Nvidia's long-term strategic positioning in the region.
- Investment Opportunities: Analysts suggest that despite the high costs associated with re-entering the market, Nvidia could leverage technological innovation and adaptability to capture growth opportunities in China, enhancing its global competitiveness.
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See More
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- Ongoing Technical Challenges: Despite record revenues, Chinese semiconductor companies still lag behind their U.S., South Korean, and Taiwanese counterparts in technological capabilities, particularly in producing advanced chips at scale, facing ongoing pressure from U.S. export controls.
See More
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See More
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- Improved Profitability: Despite revenue misses, adjusted EBITDA increased by 11% to $2.73 billion, and adjusted earnings per share surged 46% to $0.28, exceeding expectations of $0.27, demonstrating effective cost control measures.
- Bleak Future Outlook: Norwegian anticipates flat net yields for 2026, with adjusted earnings per share projected at $2.38, below the consensus estimate of $2.60, highlighting ongoing fundamental challenges facing the company.
- Investor Attention: Activist investor Elliott Investment Management called for urgent board reforms, resulting in the appointment of five new board members, which, while not boosting stock prices immediately, may lay the groundwork for future improvements.
See More
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- Surging Sales Projections: Nvidia CEO Jensen Huang announced at the 2026 GTC event that the company expects lifetime sales of its current-generation Blackwell chips and next-generation Vera Rubin chips to reach $1 trillion by the end of 2027, indicating significant future growth potential.
- Significant Revenue Growth: Analysts predict Nvidia's revenue for FY 2027 will hit $369 billion, a 71% year-over-year increase, with FY 2028 expected to reach $480 billion, reflecting strong demand and market share expansion in the AI sector.
- Market's Tepid Response: Despite Huang's robust sales forecast indicating strong growth potential, the market has reacted lukewarmly, with Nvidia's stock price declining since the announcement, suggesting investors may be underestimating the company's long-term growth prospects.
- Investment Opportunity Emerges: Currently, Nvidia's P/E ratio stands at 35, significantly higher than the S&P 500's 23.8, indicating that the market expects 2026 to be a strong year while overlooking Nvidia's long-term profitability in AI development, prompting investors to consider buying while the stock remains undervalued.
See More
