With a market capitalization of $3.6 trillion, Nvidia(NASDAQ: NVDA) is currently the largest company in the world. In the past two years alone, the company has created $3.2 trillion of that value thanks to rising demand for graphics processing units (GPUs) in data centers, which are the world’s most popular for developing artificial intelligence (AI) models.
Nvidia will report its final financial results for the third quarter of fiscal 2025 (which ended October 31) on November 20, and the company is expected to post record revenue, led by its data center segment.
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In an interview with CNBC last month, Nvidia CEO Jensen Huang made a series of very positive comments about the company’s new Blackwell GPU architecture. In particular, he said five words that should get every Nvidia stock investor excited before November 20.
It takes a significant amount of computing power to develop AI models, and most companies can’t afford to build the necessary data centers because chips are so expensive. Nvidia’s H100 has been the data center GPU of choice for AI development for most of the past year, and a single unit is said to cost up to $40,000. Some AI applications required tens of thousands.
That’s why well-equipped tech giants love it Microsoft And Amazon build centralized data centers and rent computer capacity to companies. On a large scale, it’s a profitable venture for them, and it makes AI financially accessible to companies that can’t build their own infrastructure.
Nvidia’s new Blackwell architecture delivers a huge performance jump. The Blackwell-based GB200 NVL72 GPU system can perform AI inference at 30 times the speed of the equivalent H100 system. Each individual GB200 GPU sells for between $30,000 and $40,000, which is about the same price as the H100 when it first came out.
That translates into an incredible increase in cost efficiency, meaning some of the most advanced AI models will be financially accessible to a wider range of companies and developers.
Microsoft is rumored to be the largest buyer of Blackwell GPUs to date. It told investors that it had allocated $20 billion in capital expenditure (capex) in the first quarter of 2025 (ending September 30) alone, most of which went to AI data centers and chips. That followed $55.7 billion in capital expenditures in fiscal year 2024.
Similarly, Amazon spent $30.5 billion on AI infrastructure in the first half of 2024, and is on track to spend nearly $45 billion in the second half, bringing its total investment for the full year to $75 billion dollars will bring.
Metaplatforms – which builds AI data centers for its own use – will invest up to $40 billion in infrastructure this year, and plans to spend even more in 2025. Microsoft, Amazon and Meta are just some of Nvidia’s top customers.
Image source: Nvidia.
Nvidia generated total revenue of $30 billion in the second quarter of fiscal 2025 (ending July 28), up 122% from the same period a year ago. That included $26.3 billion in data center revenue, an increase of 154%.
Nvidia’s expectations point to total revenue of $32.5 billion in the third quarter, but Wall Street’s consensus estimate (according to Yahoo) is currently $32.9 billion. That means the company’s own forecast may be too conservative.
Considering Nvidia routinely blows Wall Street numbers out of the water, I’d expect total revenue to top $32.9 billion when the company reports on November 20. If that happens, Blackwell may have made a significant contribution.
Huang appeared on CNBC on October 10 and made several positive comments about Blackwell. But these five words should get any investor excited: “Demand for Blackwell is insane.”
He also told CNBC that the new chips are in full production as planned, explaining that every technology customer wants to be first, and they all want to have the most.
Blackwell’s shipments to customers are already increasing. An estimate of Morgan Stanley suggests that Nvidia will sell up to 300,000 GB200 GPUs in the fourth quarter of 2024, and since that includes October, the company could report billions of dollars in Blackwell revenue in its upcoming report on November 20.
Morgan Stanley also said shipments could reach as many as 800,000 units in the first three months of 2025. In other words, sales are likely to grow exceptionally quickly.
Therefore, investors who already own Nvidia stock may want to hold on until November 20 (and beyond). I actually predict that Nvidia stock will perform the best among all its trillion-dollar peers next year, so investors who don’t own it might want to consider taking a position.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no positions in the stocks mentioned. The Motley Fool holds positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
5 Words From Jensen Huang Every Nvidia Stock Investor Needs to Hear Before November 20 was originally published by The Motley Fool
