Nvidia (NVDA) shares are in the spotlight as an increasing number of market indicators point to strong growth for the company’s chips. The stock has gained about 20% over the past month.
Kimberly Forrest from Bokeh Capital talked about the company during a latest program on Schwab Network. She believes Nvidia’s chips demand remain strong.
“I think the title if I was back on the sell side writing about this it would be like Porsche except no substitute or there is no substitute. You know years and years ago, decades ago, that was Porsche’s claim that no other car was as good as theirs and I think NVIDIA Corp (NASDAQ:NVDA) has a real hold on the very high-end and even the less than high-end kind of products that it, you know, product space. So the company is firing on all cylinders, everybody wants their product, they’re moving forward with good products and it doesn’t look like the biggest fear that an NVIDIA Corp (NASDAQ:NVDA) shareholder has is that somebody else comes up with a good enough chip that’s cheaper.”
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
With its latest numbers and stock performance, Nvidia was able to prove the skeptics wrong. In its recently reported quarter, Nvidia’s data center computer revenue rose 76% year over year, driven by Blackwell GB200. Despite a $4.5 billion inventory charge related to US import restrictions for China, the company expects gross margins to reach the mid-70% range by late this year due to scaling Blackwell production.
NVDA bulls believe the company can easily offset losses related to China amid new products and market diversification. Saudi Arabia’s Humain plans to buy more than 200,000 AI GPUs from Nvidia, potentially generating $15 billion in sales. The UAE reportedly has an agreement for up to 500,000 GPUs. Even without China’s involvement for now, Nvidia said nearly 100 AI factories are under construction. These factories have hyperscalers deploying 1,000 GB200 NVL72 racks weekly, each with 72,000 Blackwell GPUs.
RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) was our top detractor in the quarter as investors took profits following its extraordinary performance in 2024. Despite reporting strong quarterly results, the stock pulled back amid concerns that AI-related demand may be plateauing near-term and that capital expenditures by hyperscalers could moderate. Additionally, investor anxiety rose following the announcement of sweeping new tariffs, which sparked fears of supply chain disruptions and rising input costs across the semiconductor industry. We continue to believe that NVIDIA remains one of the most strategically important companies in global computing, with best-in class GPUs, a dominant software ecosystem, and expanding opportunities in inference, networking, and edge AI. The long-term secular trend toward accelerated computing remains intact, and we believe NVDA is well-positioned to be a key beneficiary.”
While we acknowledge the potential of NVDA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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