Nvidia (NASDAQ: NVDA) Stocks posted big gains in Wednesday trading. The artificial intelligence leader’s stock closed the day up 8%, according to data from S&P Global Market Intelligence.
Nvidia shares rose on a report from Semaphore that the U.S. is considering lifting restrictions on the sale of advanced semiconductors to Saudi Arabia. If that happens, it would open up a new market for the company. artificial intelligence a company.
Nvidia’s value also got a big boost thanks to comments made by CEO Jensen Huang in a presentation. Speaking at the Communacopia and Technology conference hosted by Goldman SachsHuang explained that his company continues to see amazing levels of demand.
He also gave encouraging guidance for Blackwell, the company’s next-generation processor. Blackwell’s manufacturing has already started ramping up, with chips scheduled to start shipping to customers in large numbers in the fourth quarter, and customer demand is very high, Huang said.
Nvidia’s CEO also said that his company approaches its designs with manufacturing diversity in mind. The company currently relies on Semiconductor manufacturing in Taiwan to manufacture its own chip designs, but says it is taking steps to ensure it can move to other factories if needed.
Is Nvidia stock a buy now?
Following some recent volatility in the stock, Jensen Huang provided some reassuring news for Nvidia investors today. The report on the possibility of getting the green light to sell Nvidia chips in Saudi Arabia highlights the untapped growth potential among government customers.
Nvidia has been delivering impressive sales and earnings growth that has led to impressive share price gains, but that has also raised questions among investors about how long this momentum can last. Today’s favorable news developments have helped calm concerns and fueled the stock’s strong gains, and I believe Nvidia still offers attractive upside at its current price.
The company continues to make significant progress in advanced GPUs, and the long-term outlook for GPU demand, emerging technologies, and service offerings remains very favorable. The stock’s recent volatility highlights that expectations are very high, but the company appears poised to make another big leap forward in processing with its Blackwell chips—and potentially lay the foundation for long-term dominance in AI.
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Keith Noonan The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Nvidia. The Motley Fool has no position in any of the stocks mentioned. Disclosure Policy.
Nvidia Shares Soar Today on AI News – Is It Time to Buy the Stock? Originally posted by The Motley Fool
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