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CEO Jensen Huang delivered great news to Nvidia investors. Howard Smith, 10 a.m. on November 29th.
Huang announced significant news that all technology investors need to know.
This article was originally published on Fool.com. Unless otherwise specified, all figures are quoted in U.S. dollars.
Nvidia (nasdaq: NVDA) recently reported another explosive quarter. The leading artificial intelligence (AI) company recorded quarterly revenue of $35.1 billion for the period ending on October 27, after inducing investors to expect earnings of approximately $32.5 billion for the third quarter of the fiscal year 2025.
However, as AI capital expenditures continue to rise, exceeding expectations has become the norm. Analysts have already baked in another big quarter, and Nvidia stock reflects much of the future success. Nvidia's stock price has dropped by about 8% since the third quarter report, even after Nvidia CEO Jensen Huang made very bullish comments during the earnings call.
However, the comments he made a week before Nvidia's earnings report should be the most exciting for investors who own the stock. Huang, who was in Japan for the AI Summit on November 12, presented a future vision clearly indicating why it's not too late for investors to buy Nvidia stock.
The real future of AI
During the earnings call on November 20, Huang addressed reports on the latest Blackwell AI architecture manufacturing and quality-related issues while answering questions. Blackwell's success is crucial for Nvidia as they move into next year. Huang shared some great news on that front:
Blackwell's production is in full swing. In fact... this quarter, they plan to deliver more Blackwell units than previously estimated. It's a case of demand outstripping supply.
However, when Huang was at the AI Summit in Japan with Masayoshi Son, the CEO of SoftBank, last week, he explained his expectations for the widespread adoption of Blackwell and other AI-related platforms by Nvidia.
There is a history between Huang and Son. In fact, by the fireside, Huang joked, "Son wanted to lend me money to buy Nvidia." "I regret not taking you up on that offer," he said to Son, adding, "It was a great idea." According to Son, the offer was made in 2016 right after SoftBank acquired semiconductor chip designer Arm Holdings for $32 billion. SoftBank still owns 90% of Arm even after going public again in 2023.
Big News from Jensen Huang
Nvidia's CEO made further important revelations at the summit. He declared, "Today, in partnership with SoftBank, we announce the introduction and construction of AI infrastructure for Japan. We intend to build together Japan's largest AI factory... from Nvidia DGX."
Nvidia DGX is the company's AI enterprise platform. The company describes it as 'a modern and unified AI development solution for software, infrastructure, and expertise.' Essentially, it's an enterprise platform where AI rubber meets the road.
Softbank is integrating Nvidia technology to add intelligence to communication networks, not just for voice, data, and video. It will be deployed across Softbank's 0.2 million sites in Japan.
55 million Softbank customers will have access to AI through the addition of an 'AI store.' All built on top of Nvidia's AI enterprise platform. As a result, it will create an 'AI grid' running throughout Japan. Huang called it 'completely revolutionary.' 'This is the first of its kind to convert telecommunications networks, communication networks into AI networks,' he said.
Nvidia's Burcease
This is an example of how Nvidia's business can sustain its growth momentum. The applications are limitless, from customer services to supporting the management and control of self-driving car networks.
Huang presented an example where an entire factory could become an AI system using cameras and large language models. Managers can 'speak' to the factory to find out if there's anything unusual, if there has been an accident, or simply to get daily reports on what's happening. This concept can also be extended to other physical objects such as roads, stadiums, offices, and buildings.
Investors who are questioning whether Nvidia's stock price has already surged too high need to consider the potential profits that can be derived from enterprise AI. The next stage is already underway. Nvidia's CFO Colette Kress told investors on the quarterly call that the company shipped its first Blackwell DGX engineering sample to the AI development company OpenAI.
His optimistic outlook on the future of his company can be understood. These artificial intelligence collaborations projects will only grow. Investors with a portfolio that includes growth segments should want to have Nvidia as part of it.
This article was originally published on Fool.com. Unless otherwise specified, all figures are quoted in US dollars.
This article was originally published on Fool.com. Unless otherwise specified, all figures are quoted in U.S. dollars.
Nvidia (nasdaq: NVDA) recently reported another explosive quarter. The leading artificial intelligence (AI) company recorded quarterly revenue of $35.1 billion for the period ending on October 27, after inducing investors to expect earnings of approximately $32.5 billion for the third quarter of the fiscal year 2025.
However, as AI capital expenditures continue to rise, exceeding expectations has become the norm. Analysts have already baked in another big quarter, and Nvidia stock reflects much of the future success. Nvidia's stock price has dropped by about 8% since the third quarter report, even after Nvidia CEO Jensen Huang made very bullish comments during the earnings call.
However, the comments he made a week before Nvidia's earnings report should be the most exciting for investors who own the stock. Huang, who was in Japan for the AI Summit on November 12, presented a future vision clearly indicating why it's not too late for investors to buy Nvidia stock.
The real future of AI
During the earnings call on November 20, Huang addressed reports on the latest Blackwell AI architecture manufacturing and quality-related issues while answering questions. Blackwell's success is crucial for Nvidia as they move into next year. Huang shared some great news on that front:
Blackwell's production is in full swing. In fact... this quarter, they plan to deliver more Blackwell units than previously estimated. It's a case of demand outstripping supply.
However, when Huang was at the AI Summit in Japan with Masayoshi Son, the CEO of SoftBank, last week, he explained his expectations for the widespread adoption of Blackwell and other AI-related platforms by Nvidia.
There is a history between Huang and Son. In fact, by the fireside, Huang joked, "Son wanted to lend me money to buy Nvidia." "I regret not taking you up on that offer," he said to Son, adding, "It was a great idea." According to Son, the offer was made in 2016 right after SoftBank acquired semiconductor chip designer Arm Holdings for $32 billion. SoftBank still owns 90% of Arm even after going public again in 2023.
Big News from Jensen Huang
Nvidia's CEO made further important revelations at the summit. He declared, "Today, in partnership with SoftBank, we announce the introduction and construction of AI infrastructure for Japan. We intend to build together Japan's largest AI factory... from Nvidia DGX."
Nvidia DGX is the company's AI enterprise platform. The company describes it as 'a modern and unified AI development solution for software, infrastructure, and expertise.' Essentially, it's an enterprise platform where AI rubber meets the road.
Softbank is integrating Nvidia technology to add intelligence to communication networks, not just for voice, data, and video. It will be deployed across Softbank's 0.2 million sites in Japan.
55 million Softbank customers will have access to AI through the addition of an 'AI store.' All built on top of Nvidia's AI enterprise platform. As a result, it will create an 'AI grid' running throughout Japan. Huang called it 'completely revolutionary.' 'This is the first of its kind to convert telecommunications networks, communication networks into AI networks,' he said.
Nvidia's Burcease
This is an example of how Nvidia's business can sustain its growth momentum. The applications are limitless, from customer services to supporting the management and control of self-driving car networks.
Huang presented an example where an entire factory could become an AI system using cameras and large language models. Managers can 'speak' to the factory to find out if there's anything unusual, if there has been an accident, or simply to get daily reports on what's happening. This concept can also be extended to other physical objects such as roads, stadiums, offices, and buildings.
Investors who are questioning whether Nvidia's stock price has already surged too high need to consider the potential profits that can be derived from enterprise AI. The next stage is already underway. Nvidia's CFO Colette Kress told investors on the quarterly call that the company shipped its first Blackwell DGX engineering sample to the AI development company OpenAI.
His optimistic outlook on the future of his company can be understood. These artificial intelligence collaborations projects will only grow. Investors with a portfolio that includes growth segments should want to have Nvidia as part of it.
This article was originally published on Fool.com. Unless otherwise specified, all figures are quoted in US dollars.
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