Nvidia (NVDA) announced on Wednesday that its latest Blackwell AI chips have reached full-scale production and generated $11 billion in revenue during the fourth quarter. Interestingly, this was the fastest product ramp-up in the company’s history, according to CFO Colette Kress, and large cloud service providers accounted for approximately 50% of Nvidia’s Data Center revenue.
It is also worth noting that recent concerns about production delays, which had been fueled by reports of overheating issues and glitches, seem to have been put to rest. Indeed, it was previously reported that Nvidia’s top customers, including Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), and Meta (META), had cut orders of Blackwell products.
However, Ali Mogharabi, senior equity analyst at WestEnd Capital Management, told Yahoo Finance that demand for Blackwell appears to be very strong due to hyperscalers’ need for artificial intelligence infrastructure. In fact, Nvidia’s latest update revealed that sales to key customers have actually doubled over the past year.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 36 Buys and three Holds assigned in the past three months. After a 63% rally in its share price over the past year, the average NVDA price target of $178.62 per share implies an upside potential of 41.1% from current levels.
