NVIDIA's AI Ambitions Fuel Growth Value Stock Label
NVIDIA CEO Jensen Huang calls his company 'the world's first and only growth value stock,' thanks to its expanding AI platform, broad customer base, and infrastructure partnerships. He believes that accelerating AI infrastructure spending, broader customer adoption, and new applications will drive growth for the tech giant.
Huang reiterated his forecast that AI infrastructure spending could reach $3 trillion to $4 trillion by 2030. He is confident in NVIDIA's ability to grow revenue by 70% year over year, with unconstrained demand growing more than 100%, according to earlier guidance.
The company has seen significant growth in its platform, with the Grace Blackwell NVLink 72-rack systems recording 27% month-over-month growth. NVIDIA generated $303 billion in revenue over the last 12 months, with gross margins near 75%. System pricing has increased across generations, with Hopper at about $18,000 per GPU system, Blackwell at about $25,000, and Vera Rubin at roughly $40,000.
NVIDIA's platform runs models from major developers, including OpenAI, Alphabet Inc.'s unit Google Gemini, Meta Platforms Inc., Anthropic, and xAI. The company has a broad customer base, with OEM partners such as Dell Technologies Inc., Super Micro Computer Inc., Lenovo, HP Inc., and Cisco Systems Inc.
Huang also highlighted partnerships in areas such as cybersecurity, physical AI, autonomous vehicles, and warehouse logistics systems. He mentioned work with CrowdStrike Holdings Inc. around AI-powered cybersecurity, as well as partnerships involving Cisco and Palantir Technologies Inc. The company is working with Nokia Corp. on AI-RAN and 6G technology.
However, Huang noted that NVIDIA continues to face upstream supply challenges, including packaging, memory, connectors, voltage regulators, and wafers. Downstream bottlenecks include land, electricity, and ready-to-use data-center capacity, but the company is working to address these issues through partnerships with cloud providers, neoclouds, OEMs, and AI companies.
NVIDIA's share price was up 0.81% at $220.12 at the time of publication on Friday.