Nvidia (NVDA) stock jumped over 1.5% in after-hours trading yesterday after CEO Jensen Huang called the demand for Blackwell chips “insane.” Huang also confirmed that the production of the chips is going as planned and is on full scale. He was heard saying that customers want to be the first to own the product and also want the most of the chips.
Huang reaffirmed the huge demand for Blackwell products at CNBC’s Closing Bell Overtime Wednesday afternoon. Huang was at the show with Accenture (ACN) CEO Julie Sweet, where they discussed details about their expanded AI (artificial intelligence) partnership.
Nvidia’s Ambitious Plans for Blackwell
Nvidia is on track to sell the Blackwell AI processors in the fourth quarter. The chip giant already sells the chips to data centers and industrial customers. The Blackwell chips boast 2.5x the compute performance compared to its predecessor Hopper chips. These chips will bolster the generative AI capabilities for companies as they launch newer versions and advanced gen-AI technology.
Nvidia is constantly ramping up the performance of its platform and technology, thus helping in increasing revenue and throughput by reducing costs for both the company and its customers. Huang noted that the company is constantly striving to innovate and support the world’s fast-paced AI needs. Blackwell was introduced in March this year as the processor of the generative AI era and the company expects to earn several billion dollars in revenues from the sale of these products in Q4.
JPMorgan Analyst Reacts to Blackwell’s Demand
JPMorgan analyst Harlan Sur shared his thoughts on Nvidia’s Blackwell GPU (graphics processing units) platform after hosting a meeting with the investor relations team. The discussion circled around Nvidia’s data center business and the expected production shipment ramp of the Blackwell platform.
Sur noted that Nvidia is on track to supply its next-gen Blackwell GPU platform in large numbers in Q4. The five-star analyst also stated that the company expects to earn billions of dollars in Blackwell revenues in Q4. At the same time, Sur also said that the NVDA team cautioned investors to ignore the sell-side noise on the rackscale portfolio changes.
Sur ranks #49 on TipRanks’ universe of analysts. He boasts an impressive average return per rating of 24.30% and has a success rate of 66%. To date, Sur’s best rating was on Nvidia stock, between March 22, 2023 and March 22, 2024. During this period, his Buy rating on NVDA stock generated massive returns of 256.30%.
Is NVDA Stock a Buy Now?
Wall Street is highly optimistic about Nvidia stock, given its heightened exposure to the AI world. On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 39 Buys versus three Hold ratings. Also, the average Nvidia price target of $152.44 implies 28.3% upside potential from current levels. Year-to-date, NVDA shares have rallied over 140%.
