Nvidia's Explosive Revenue Growth Sparks Debate Over Stock's Future

Nvidia has reported a fiscal second-quarter revenue of $96.22 billion, up 105.85% year over year, but its stock barely moved.

The company's Data Center sales reached $89.02 billion, with CEO Jensen Huang stating that 'AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.'

Investors are concerned about margins, supply, and financing, with management expecting gross margins to bottom at 71% to 72% in Q4 due to rising memory costs.

The consensus target price for Nvidia's stock is $327.7, representing a 46.3% upside from its current price of $223.99.