Nvidia stock rose 4% in Tuesday, notching its fifth straight day of gains. Wall Street analysts at KeyBanc, Citi (C), Bernstein, and several other investment firms reiterated their Buy ratings on the stock this week.
KeyBanc analysts raised their fiscal year 2025 sales outlook for Nvidia from $128.5 billion to $130.6 billion, with Nvidia’s new flagship Blackwell AI chips contributing $7 billion to fourth quarter revenues. That’s higher than Wall Street’s consensus estimate of $125.6 billion for 2025 revenue, according to Bloomberg data.
Wall Street continues to raise its estimates for the AI chip leader, Nvidia, as news emerged that Foxconn and Nvidia are building Taiwan’s largest supercomputer, powered by the new Blackwell platform. Additionally, Foxconn is constructing the world’s largest facility for assembling Nvidia’s GB200 Superchips in Mexico.
This move reassures investors and customers about Nvidia’s supply of Blackwell components while diversifying production away from Taiwan, reducing risks from potential Chinese interference.
At the Nvidia AI Summit, Bob Pette, Nvidia’s VP and GM of enterprise platforms, highlighted the power of the company’s accelerated computing stack, calling it "the dawn of a new industrial revolution" and emphasizing the Blackwell platform’s improved performance and energy efficiency.
Fears of an AI bubble seem to be subsiding following the OpenAI funding round that sent its valuation to $157 billion, and falling interest rates should help drive spending on AI infrastructure.
We'll soon get a look at third-quarter results of AI stocks like Microsoft and Alphabet, and Tesla's robotaxi event on Thursday should also provide some insight into the potential of autonomous vehicles.
Nvidia stock surges and continue to thrive, and it will likely report another blowout quarter next month. There's room for the stock to move higher, but investors should expect the stock to remain volatile.
Wedbush analysts said “another positive data point” for Nvidia is a potential new wave of funding for AI startups. The Information reported Monday that OpenAI’s staggering $6.6 billion funding round will likely drive a wave of new AI investments. New funding for AI-related startups would, in turn, fuel demand for Nvidia's AI chips.
Wedbush’s Matt Bryson said on Tuesday that the report is an indication "that there is little likelihood AI spending growth pauses through much (if not all of 2025) to NVDA's benefit."
Boosting Nvidia’s positive momentum, Foxconn (2354.TW) announced plans to build a megafactory for assembling Nvidia's AI servers. At an annual event in Taipei, Foxconn Chairman Young Liu revealed that the company is constructing the world’s largest facility for assembling Nvidia GB200 servers in Mexico, as reported by the Financial Times. Liu noted the "crazy" demand for Nvidia’s latest AI chips. This strategic move will help Nvidia lessen its dependence on China, particularly in the face of escalating trade tensions.
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