HomeBusinessNvidia Stock ends on November 20th

Nvidia Stock ends on November 20th

Over the past two years, no trend has caused more buzz on Wall Street than the rise of artificial intelligence (AI). The ability of AI-powered software and systems to become more proficient at their assigned tasks, and to learn new skills over time without the aid of human intervention, gives this technology seemingly limitless long-term potential.

In Determine the pricePwC analysts estimate that AI would increase global gross domestic product (GDP) by 26% ($15.7 trillion) by the turn of the century. A rise of this magnitude means that companies up and down the AI ​​landscape could be winners.

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However, no company has benefited more directly from the rise of AI than the semiconductor giant Nvidia (NASDAQ: NVDA). In less than two years, Nvidia has gone from a $360 billion company of some significance in the technology sector to Wall Street’s most valuable publicly traded company ($3.64 trillion market cap).

Given the critical role Nvidia plays in the AI ​​revolution, Wall Street and investors are focused on November 20, when the company will raise its proverbial hood and reveal its operating results for the quarter ending October 27.

While the optimism surrounding Nvidia is thick enough to cut with a knife, I can name a half-dozen reasons why Nvidia stock will hit the wall on November 20.

Before I get into the details of why Nvidia’s stock may struggle following the release of its fiscal third-quarter results, I want to provide some background explaining why Nvidia has added $3.3 trillion in market value in less than two years.

The core of Nvidia’s growth is its hardware. Orders for the company’s H100 graphics processing unit (GPU), commonly referred to as the “Hopper”, and its successor Blackwell GPU architecture, are being delayed. Companies are eager to gain first-mover advantages, and Nvidia’s AI GPUs offer superior computing capabilities.

In addition to strong demand, Nvidia boasts stratospheric pricing for its hardware. While competing AI GPUs are priced in the $10,000 to $15,000 range, the Hopper consistently commands a price of $30,000 to $40,000 per chip. Companies that willingly paid a premium for Nvidia’s solutions saw gross margins increase as high as 78%.

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I’d be remiss if I didn’t also mention the key role Nvidia’s CUDA software platform has played in driving revenue growth. CUDA is the toolkit developers use to build large language models and maximize the computing potential of their GPUs. In other words, CUDA is the lure that keeps Nvidia’s customers within the umbrella of products and services.

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