Kimihiko commented on a stock · Nov 27, 2024 08:34

Nvidia: Shines in the 3rd quarter with competitiveness.

Nvidia Corporation's third-quarter revenue surged to $35.1 billion, a 94% increase year-on-year driven by AI adoption across various sectors, reaffirming my 'strong buy' rating at a target stock price of $200.
The datacenter sector generated $30.8 billion, a 112% increase year-on-year, highlighting Nvidia's technological superiority in AI infrastructure demand, accelerated computing, and AI software generation.
Enterprise AI and sovereign computing markets represent new growth vectors, with Nvidia's software segment approaching an annual run rate of $2 billion and adoption accelerating through key partnerships.
Despite supply chain and regulatory risks, Nvidia's market position, technological leadership, and operational excellence justify a premium multiple, providing an attractive entry point for long-term investors.

I recommended Nvidia Corporation (nasdaq: NVDA In the previous article about ), we strongly argued Nvidia's continued dominance in the AI chip market and predicted that they would exceed expectations for the third quarter. Nvidia is once again striving to achieve financial results that exceed expectations.In the previous article about ), we strongly argued Nvidia's continued dominance in the AI chip market and predicted that they would exceed expectations for the third quarter.
Nvidia's performance in the third quarter was phenomenal, with revenue soaring to $35.1 billion, showing an astonishing 94% year-on-year growth. The fourth-quarter guidance is $37.5 billion, suggesting not only sustainable growth but also accelerating growth.Nvidia's performance in the third quarter was phenomenal, with revenue soaring to $35.1 billion, showing an astonishing 94% year-on-year growth. The fourth-quarter guidance is $37.5 billion, suggesting not only sustainable growth but also accelerating growth.
The main reasons I rated it as 'Strong Buy' before were the short-term outlook of the Blackwell platform and the significant demand. However,The results for the third quarterIt has been revealed that the growth is not solely driven by short-term demand. This is mainly due to the industrial shift towards AI adoption across multiple sectors, creating a huge total addressable market. Based on the performance of the third quarter of fiscal year 2025 and the expanding market, I am reaffirming a "Strong Buy" rating and setting a target price of $200 for the next 12 months.
What I would like to emphasize first in the performance of the third quarter is that the datacenter segment, which I have long considered the main growth driver, generated revenue of $30.8 billion, a 112% increase compared to the previous year. Just the size of the datacenter segment alone has surpassed the total revenue for the entire fiscal year of 2023 in one quarter, making this performance particularly noteworthy. The sustainability of this growth is supported by several new market environments and structural factors.
Firstly, the demand for AI computing infrastructure shows no signs of slowing down. Recent market data indicates that the cloud infrastructure market alone is expected to reach $837.97 billion by 2034, with an annual growth rate of 12.3%. This huge market opportunity is being driven by two simultaneous platform transitions articulated as the shift from general-purpose computing to accelerated computing and the evolution from software designed by humans to software generated by AI.CEO Jensen Huangis driving by two simultaneous platform transitions expressed as the shift from general-purpose computing to accelerated computing and the evolution from software designed by humans to software generated by AI, as described by CEO Jensen Huang.

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