C. J. Muse, the renowned analyst of Cantor Fitzgerald, is bringing good news to every NVDA stock investor and enthusiast, as he expects Nvidia to beat all the predictions and go far beyond even the most positive expectations when it comes to earnings.
This prediction is a result of Nvidia’s continuous innovation and the robust demand for its products. In fact, Muse expects semiconductors to profit most in this year’s earnings, with definitely Nvidia on the top of the list. Muse said that AI-leveraged names are still the most attractive to own heading into earnings, with Nvidia being his top pick, taking into account the most anticipated release of the year, Blackwell!
He also added that despite the fears of a bubble, he loves a healthy degree of skepticism, suggesting that it’s important to be aware of potential risks and not get carried away by hype, even if the overall outlook remains positive. Moreover, the analyst stated that AI spending remains as robust as ever, and Nvidia’s numbers are just going to continue up and to the right. Investors are typically paid owning Nvidia into a product cycle, and the upcoming Blackwell chip is the mother of all products.
Muse’ words couldn’t be more accurate, as the AI industry is thriving currently. It stands at $184 billion and it’s projected to reach a shocking $826 billion by the year 2030, which would definitely benefit Nvidia most, whose chips are running a very large portion of this new-born industry. On top of that, his words reflect an admiration of Nvidia’s stock as it implies that investors generally see good returns when they hold NVDA stock through the development and release phases of new products. Furthermore, describing Blackwell as “the mother of all products” highlights the extraordinary importance and potential impact of Nvidia’s current product cycle.
This suggests that the products Nvidia is currently developing or releasing are expected to be exceptionally influential and successful, driving significant growth for the company. Muse believes that Nvidia has a very high chance in achieving the milestone of $5 earnings per share the next year, which undoubtedly makes the stock extremely appealing to investors with its current price. For context, FactSet’s consensus estimates project only $3.59 in adjusted earnings per share for next year, up from an estimated $2.59 for 2024.
Why is Blackwell a big deal?
The new revolutionary chip, Blackwell, is expected to be released later this year, with a new revolutionary architecture that involves unprecedented features. It will handle double the compute and model sizes of its predecessor, its next generation NVLink offers high-speed communication between as many as 576 GPUs, and AI-based preventative maintenance optimizes system uptime and this is just to mention a few of Blackwell’s features.
Therefore, the demand for such a game-changing system already is surpassing supply, and Nvidia expects this to continue into next year. But that’s not all of it. Nvidia’s CEO, Jensen Huang said that the company will have other more advanced chips coming each year, and the current one is just the beginning of a new revolution that’s unfolding in the AI industry. Huang stated that the company is on a one-year-rhythm of innovation. This reflects Nvidia’s consistency in maintaining the same certain level of brilliance, bringing fresh and cutting-edge technology to the market annually.
Does this make NVDA stock a good buy with the current price?
All of this means that Nvidia will keep its position in the long term due to the rapid and unmatched pace of creativity, which makes it so hard on the rivals to compete fiercely with Nvidia. The firm has even widened its interest from solely chips to full computing platforms, which basically means that if customers invest in the company’s software stack today, they will keep benefiting in the upcoming years from the products that will keep coming out one after another.
So, if you’re an NVDA stock investor, you should know that Blackwell will definitely boost Nvidia’s stock the moment it’s released, moreover, in the quarters to follow, but that won’t be the end of the company’s astonishing growth story. Other innovations in the years to come will definitely act as new catalysts for revenue and share price growth.
On top of that, Nvidia’s recent supply chain expansions will level up the company’s revenues and profits, as the latter has secured partnerships with semiconductor manufacturers, foundries and other crucial players in the tech industry, such as Micron Technology, Foxconn, Samsung Foundry and ASML. Additionally, Nvidia has pushed the manufacturers to improve their technologies, increase the pace and enhance the production facilities, in order to get a significantly bigger amount of chips produced. So, with all of these givens, NVDA stock without a single doubt seems like a great investment, even after the pull-back.
