NVIDIA's Heading to $180, With $200 On the Table
Just confirming my very positive way of NVIDIA stocks' further outlook. I think I'll hold my full stake in NVIDIA until $175 or $180, and hold the rest of it till reaching $200 or even higher after some profit-taking.
A short-lived wave to regress within a week after another record high above $153 per share on January 7 has been spawned only by some reports about delays experienced by NVIDIA's major customers in delivering its cutting-edge Blackwell-equipped racks for creating the generative artificial intelligence infrastructure in big data centers. Leaks cited alleged troubles or glitches with chip connectivity. Still unconfirmed sources, quoted by all the major news agencies, stated that Microsoft, in particular, had to shift to an older generation of NVidia chips, which was the H200, when building its Phoenix data center due to the delays. They also claimed that technical setbacks affected other NVIDIA's partners like Amazon Web Services (AWS), Google cloud division and Meta Platforms. Let me remind you here that NVIDIA CEOs recently projected a multiple increase in revenue from the advanced Blackwell series, saying about a "several billion dollars" contribution of these Blackwell chips into the current quarter's sales, which followed NVIDIA's absolutely successful Q3 financial indicators at the end of November (see my post from that time for more details). As for the technical characteristics, the Blackwell series of chips is at least four times more energy efficient and productive than their Hopper predecessors. At the same time, no one ever questioned the exponentially growing demand for NVIDIA chips, especially for the new series, or NVIDIA's ability to fulfil vast orders, and only the factor of actual delivery time was discussed. And even the leaking information reported that large customers of NVIDIA may even reconsider to increase their orders as soon as NVidia and its supply chains resolve the issues.
NVIDIA shares now quickly bounced back above $147 from strong autumn support around $ 130 per share. It was enough for the upside move that its CEO Jensen Huang mentioned his optimism about continuing deliveries to China after U.S. president Trump's inauguration, despite various obstacles from the previous White House administration for reasons of national security. Trump's $500 billion joint venture, named Stargate, to build extensive AI data centers and electricity generation facilities in Texas over the next four years became a more important and specific driver for NVIDIA climbing this week. The Wall Street crowd immediately remembered the fundamental reason under hitting NVIDIA's all-time record prices in the beginning of the year, which were related to unveiling the firm’s latest line of RTX 5090 graphical processing units (GPUs) at the Consumer Electronics Show in Las Vegas during the first week of January. RTX 5090 will possess at least twice the performance of their predecessors, which was the RTX 40 series. By the way, Jensen Huang in his trademark black leather jacket also said at the same event that Blackwell AI chips were in full production to underscore NVidia's next wave of earnings growth. That was to spite the ill-wishers, one might say. He also presented NVidia's "in-house" AI models to run locally on the firm's chips, while emphasizing the strength of "AI agents" to handle domain-specific tasks and saying that the AI agents create another "multi-trillion-dollar opportunity". NVidia even launches a desktop AI supercomputer, named Project Digits. Even in the field of useful quantum computers which are at least more than a decade from now, all potential NVIDIA's competitors are working together with NVIDIA.
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