All eyes are focused Nvidia‘S (NASDAQ: NVDA) upcoming income. On November 20, the investment world will have the opportunity to listen directly to the management team at the heart of the company artificial intelligence (AI) tree. There are some critical questions that I hope will be answered, such as how recent the events are Super micro will impact the company’s ability to ship its latest Blackwell chips on time and meet demand.
Speaking of Nvidia, CEO Jensen Huang described that question as “crazy.” The third quarter figures should show whether that demand is really insane. The sky-high expectations Wall Street has placed on the company mean the level of madness matters. ‘Strong’ is not enough at the moment.
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While observers wait for November 20, let’s take a look at where Nvidia could be in a year.
Wall Street’s expectations for Nvidia are sky high. Sure, Huang’s public statements tend to fuel this fire, but the fact remains that the company’s stock price still has success baked in and trades at nearly 52 times forward earnings. Here’s a chart showing that in relation to some of the big boys of tech.
Nvidia must continue to grow at a significant pace or its stock price will begin to stabilize. To do this, the company must perform at an extremely high level, something it has demonstrated time and time again. The biggest upcoming test is the rollout of Blackwell, the latest version of its flagship AI chip.
There were some manufacturing issues earlier this summer that Nvidia appears to have resolved, but now the company is facing another challenge: Supermicro, which has been a crucial part of Nvidia’s supply chain. Supermicro is facing mounting allegations of misconduct, and now Nvidia is reportedly looking for a partner elsewhere. Nvidia seems to be anticipating this, but it remains to be seen whether this will have any effect on the Blackwell offering.
Moore’s Law – the idea that computer processors get about twice as fast every two years – has long been the guiding principle in Silicon Valley. However, in recent years the longevity of the law has come into question. That’s because chipmakers were reaching the limit on the number of transistors that could fit in a circuit – the driving force behind Moore’s Law.
But that may be an outdated paradigm. At least Huang believes so. Nvidia has introduced the idea of ’accelerated computing’, where advances in speed and efficiency come from a whole host of factors – networking, algorithms, software and data center design – rather than the single limiting factor of the number of transistors in the computer. a circuit. He recently suggested that this may be the era of “Hyper Moore’s Law,” in which speed “doubles or triples every year.”
