Nvidia’s stock is soaring on Thursday, driven by news that the company’s highly anticipated Blackwell chips are in full production. CEO Jensen Huang confirmed the news on Wednesday, highlighting the immense demand for these chips.
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” Huang stated on CNBC’s Closing Bell Overtime. “Everyone wants to have the most, and everyone wants to be first.”
Introduced in March, the Blackwell chips are poised to begin shipping in the fourth quarter. The strong demand for these chips has been so intense that it has created tension and frustration among Nvidia’s customers. Analysts predict that this demand will translate into robust fourth-quarter revenue for the company. Beth Kindig of I/O Fund even sees the potential for these chips to propel Nvidia’s valuation to a staggering $10 trillion.
Nvidia’s stock is outperforming the market on Thursday, trading above its 50-day moving average. This strong performance reflects the market’s confidence in the company’s future prospects, fueled by the success of the Blackwell chips.
However, investors are also keeping a close eye on the economic landscape. The Federal Reserve’s benchmark rate currently stands at 4.83%, while inflation has recently shown signs of cooling. The unemployment rate is currently at 4.2%. Investors will be closely monitoring these economic factors to assess the potential impact on Nvidia’s performance in the coming year.
It is important to note that Nvidia’s revenue growth in fiscal year 2023 was only 0.22%, reflecting the influence of macroeconomic factors, demand for its products and services, and competition within the industry.
Investors are also comparing Nvidia’s performance to its peers in the Information Technology sector. Nvidia’s stock has experienced impressive average annual growth of 83.79%, significantly higher than the average growth of 9.48% for its peers. This performance highlights Nvidia’s strong position within the sector.
As of Thursday, Nvidia shares are up 3.43% at $122.93. The strong performance is a testament to the market’s confidence in the company’s future, driven by the success of the Blackwell chips and the company’s overall position in the rapidly evolving technology sector.
