nvidia (NVDA -16.97 %) Last year, he gained more than 170 % of ROs, and emerged as a key player for the artificial intelligence (AI) boom. This is because high -tech companies sell the world’s best AI chips and a wide range of related products and services to accompany customers through the AI story. NVIDIA’s Chief JENSEN HUANG called the company a “on lamp” in an interview with a BG2Pod podcast several months ago.
All of these are particularly important, taking into account the possibility of revolutionizing many industries, the profits of companies involved in the development of AI and the possibility of strengthening the profits of companies that improve business. is. Today’s $ 200 billion AI market is expected to reach more than $ 1 trillion by the end of 10 years.
NVIDIA is suitable for a long time to make a profit. In fact, my prediction is that this hot stock is not paused this year, but instead, it will fly up to 2025 -this one. Let’s check it.
Image source: Getty image.
Deepseek News and NVIDIA
However, it is important to deal with news that damages NVIDIA inventory early this week. China’s Startup DeepSeek has launched a large language model, and it took only two months to develop, and it took less than $ 6 million. This was compared with AI shares including NVIDIA. The concern is that before DeepSeek purchases the NVIDIA’s most expensive GPU, we saw DeepSeek training LLM well with chips that are not very powerful, and saw Deepseek well training LLM.
However, there is a possibility that the opposition may occur, and this progress by DeepSeek really promises US companies to secure leadership using top GPUs. In any case, I do not see this news as hurt NVIDIA’s growth. Now, let’s take a brief look at the roads that NVIDIA traveled so far.
The high -tech giant began as a designer of a graphic processing unit (GPU) that mainly provided services to the video game industry. However, the ability to handle multiple GPU tasks at once has become a great tool for many other sector. Therefore, NVIDIA has created a CUDA, a parallel computing platform that helps the use of GPUs to explode throughout the market.
And as the AI boom gained momentum, it was clear that NVIDIA’s GPU played a major role. The company’s earnings report was confirmed. It has confirmed that the revenue has risen in quarterly after a quarter of the two -digit and three -digit two -digit and three digits, reaching billions of dollars. In the most recent quarter, NVIDIA reported more than $ 35 billion. Importantly, NVIDIA has not only created a growth of revenue, but also links to the very powerful profitability of sales. The total margin has exceeded 70 % in the past year.
Let’s move according to my prediction. Some investors are worried that the stock performance of NVIDIA’s stars in the past two years may be paused after 800 % increase in that period. And if NVIDIA was glorious and continued to sell the current product, it might have been a scenario.
But NVIDIA is not standing. This Market PowerHouse is now launched a new Blackwell Architecture, and Rubin, the next generation architecture, may not be so late. The news report, including the daily Taiwanese economy, suggests that Rubin’s release could occur by mid -year.
NVIDIA’s innovation
My prediction is that this innovation (these two launches) will increase NVIDIA shares this year. For some reasons. Such a major product release indicates that HUANG was serious when Huang updated the GPU every year and could change this promise into reality. With the annual update, it is very difficult for rivals to catch up and release NVIDIA. This provides a reason to be confident in growing in the long term.
The release of the two major products this year will generate concrete things that we can see immediately, and that is the profit. The company has already stated that Blackwell will generate billions of dollars in the fourth quarter -the end of this month -and over 70 % of the margins. Therefore, NVIDIA’s new release can quickly increase profits and is a highly profitable level. If the future revenue report is confirmed, investors can continue to accumulate on this top player.
Finally, if you trade with a quotation of 40 times earlier, NVIDIA is not cheap, but there is room for execution, especially in growth and profitable profiles.
Considering all of these, my predictions will not stop NVIDIA’s top performance here and will continue in 2025. over time.
