It’s no secret that Nvidia (NASDAQ: NVDA) has soared amid the ongoing artificial intelligence (AI) boom, leaving customers clamoring for the company’s graphics processing units (GPUs).
That has led to rising revenues in Nvidia’s data center segment. In the second quarter of fiscal 2025 ending July 28, total revenue more than doubled year over year to $30 billion, and 88% of that revenue came from the data center group.
Start your morning smarter! Wake up with Breakfast news in your inbox every market day. Register for free »
So it stands to reason that this crucial segment will continue to drive the stock price in the near term. The big question is whether Nvidia stock will gain more room after a massive 187% gain so far this year. And there’s one number in particular that can give investors an idea of what’s going to happen to the stock.
The company has been unable to make enough of its H100 and H200 GPU chips to meet demand. Now it has its next-generation Blackwell chips in production and sales are rising. CEO Jensen Huang has said expectations for Blackwell are “incredible.”
Huang also said that the company expects to release the latest technology annually. It has already been announced that an accelerator named Rubin will arrive in 2026.
Investors will start to see how Blackwell will impact revenue in its fiscal 2025 third-quarter report on Nov. 20. A key data point to keep an eye on is the quarterly revenue growth of Nvidia’s data center segment. That’s because growth has actually slowed over the past five quarterly periods compared to the previous quarter.
If the stock is to continue its incredible run, sequential revenue growth must reverse this trend. At the very least, investors will want the declining growth rate to level off. Blackwell, a next-generation AI accelerator, could make this possible. That’s because Nvidia shares have already risen in anticipation of further growth. Investors should keep an eye on this figure to see if the stock gains can continue.
Consider the following before buying shares in Nvidia:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $858,854!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.
