Nvidia (NVDA) saw its stock rise once again on Wednesday, nearing the record high it reached last month. This surge comes as the chipmaker continues to benefit from investor excitement surrounding its strong position in the artificial intelligence (AI) industry.
The company’s remarkable growth has propelled it into the exclusive $3 trillion market capitalization club, a feat previously achieved only by tech giants like Microsoft (MSFT) and Apple (AAPL). The big question now is how Nvidia plans to sustain this impressive momentum.
Analysts at Truist Securities recently released a report delving into this very question. They believe that earnings per share (EPS) growth driven by increased organic sales will be crucial for Nvidia to maintain its upward trajectory. With a high demand for AI chips and Nvidia’s leading position in the market, the company is well-positioned for further growth.
Nvidia has consistently exceeded expectations with its revenue and earnings performance in recent quarters. In its fiscal 2025 first quarter, the company reported record revenue of $26.04 billion, more than triple the figure from the previous year. This strong showing, along with an EPS of $5.98 compared to 82 cents, surpassed analysts’ estimates and solidified investor confidence.
Truist analysts also highlighted the ongoing demand for AI-related hardware, which could further bolster Nvidia’s performance. The company’s supply chain is gearing up to deliver an impressive $150-200 billion in data center sales by 2025, reflecting the continued growth in the AI sector.
Additionally, Nvidia’s shift towards providing comprehensive solutions beyond just chips, as seen with its upcoming Blackwell platform, is expected to drive further growth. This move towards full-stack solutions is anticipated to play a significant role in the company’s revenue and EPS acceleration in the coming quarters.
Overall, Nvidia’s stock showed a 2.5% increase on Wednesday, reaching $134.72 in afternoon trading. With a strong performance so far in 2024, the company’s stock has gained an impressive 172% year-to-date. This consistent growth trajectory, fueled by strong demand for AI technology, positions Nvidia as a key player in the ever-evolving tech landscape.