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NVIDIA Corporation (NVDA) Surges Ahead With $2B Ethernet Push and $1B NVLink Wins

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks on Wall Street’s radar.

On June 3rd, Citi analyst Atif Malik reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $180.00 price target.

The analysts have pointed out Nvidia’s strategic focus on artificial intelligence (AI) networking, highlighting the company’s efforts to optimize compute and storage with its networking operating system, Dynamo. Dynamo is intended to achieve the lowest total cost of ownership for tokens per second per user.

Moreover, the company’s first-quarter results have demonstrated a significant 64% quarter-over-quarter growth in its networking segment, backed by both scale-up and scale-out products. This growth has, in turn, led to the company’s remarkable 86.17% year-over-year revenue growth and 70.11% gross profit margin.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

The company’s NVLink solutions have grossed over $1 billion in sales. Meanwhile, its Spectrum-X (Ethernet) portfolio has achieved two new customers, contributing to a quarterly run-rate of $2 billion. Even though Infiniband is the gold standard for hyperscalers, Ethernet is also becoming a preferred choice due to its familiarity.

Discussing the NVLink, analysts noted that this specialized scale-up platform connects 72 GPUs and benefits larger language models. Customers can purchase only the components they need for their AI infrastructure, such as super NICS and switches, without having to purchase the entire stack.

Noting Co-Packaged Optics (CPO) in relation to NVLink, the analysts said that while copper is low power and cost-effective, it can create noise on the PCB. Placing optics next to ASICs will help the company to eliminate the need for additional digital signal processors and retimers, optimizing its AI networking solutions even further.

NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

Overall, NVDA ranks 4th on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of NVDA as an investment, 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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