NVIDIA (NASDAQ: NVDA) The company’s shares recorded a big gain in trading on Wednesday, with shares of the artificial intelligence (AI) leader ending the day up 8%, according to the data. S&P Global Market Intelligence.
Nvidia shares rose after Semaphore reported that the U.S. was considering lifting restrictions on sales of advanced semiconductors to Saudi Arabia, which would open up new markets for the company. artificial intelligence company.
Nvidia’s valuation also got a big boost from comments made by CEO Jensen Huang during the company’s presentation. Goldman SachsHuang said his company continues to see incredible demand.
He also sounded optimistic about the company’s next-generation processor, Blackwell. Huang said manufacturing for Blackwell has already been ramped up, chips are expected to start shipping to customers in volume in the fourth quarter, and customer demand is very strong.
Nvidia’s CEO also said the company is working on designs with manufacturing versatility in mind. Taiwan Semiconductor Manufacturing The company plans to manufacture its chip designs in-house but says it is taking steps to shift production to other factories if necessary.
Should you buy Nvidia stock now?
Jensen Huang delivered a lot of encouraging news for NVIDIA investors today amid recent volatility in the stock price. Reports that NVIDIA chips may be approved for sale in Saudi Arabia also highlight the untapped growth opportunity among government customers.
“Nvidia has been delivering impressive revenue and earnings growth that has fueled its incredible stock price appreciation, but at the same time has left investors questioning how long this momentum can last. Today’s favorable news developments should help ease concerns and support a strong upside for the stock, and I believe that at current prices, Nvidia still offers attractive upside potential.”
The company continues to hold a clear lead in the advanced graphics processing unit (GPU) space, and the long-term demand outlook for its GPUs and emerging technology and service offerings remains very favorable. While recent stock price volatility indicates that expectations are sky-high, the company appears poised to make another big leap in processing power with its Blackwell chips, potentially laying the foundation for long-term dominance in the AI space.
Should I invest $1,000 in Nvidia right now?
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Keith Noonan The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and NVIDIA. The Motley Fool Disclosure Policy.
Nvidia surges today thanks to AI news — is it time to buy the stock? Originally published on The Motley Fool
