Research archive for NVDA

There's an AI land grab going on at the moment. Companies are scrambling to stake their claim of the new AI-centric future; they only get one chance to do this because once the industry settles, there won't be much room for new major players. It's very exciting to see how things are unfolding, as organisations roll out new models, compete for talent, and do their best to secure the latest Nvidia chips.

Nvidia and OpenAI are joining forces in one of the biggest AI infrastructure bets yet - a plan that could see up to $100 billion invested to build out the next generation of data centres. OpenAI will deploy at least 10 gigawatts of Nvidia systems to train and run its future models, with the first phase slated for 2026, and running on Nvidia's new Vera Rubin platform.

Nvidia's data centre sales overshadow everything else the company does, but quietly in the background, its vehicle arm is starting to become a serious business in its own right.

Visual images are a powerful way to make a point. Just look at Nvidia's data centre revenue lift-off, in the quarterly chart below. The huge growth came a mere two years ago, and has transformed the business.

The biggest and most important company in the world, Nvidia, reported results on Wednesday night, and they were once again outstanding. Earnings per share grew by 54%, revenues increased by 56% and a $60 billion share buyback program was approved.

When building an investment portfolio made up of concentrated share picks, you must have the courage of your convictions. Get in early, and hold for at least a decade, to get the big returns.

Nvidia is back on the offensive in China, dusting off its H20 AI chip and preparing to restart sales in a move that could unlock a previously frozen $15 billion revenue opportunity. The H20 was developed specifically for China after the US tightened export restrictions in late 2023, citing national security concerns.

CoreWeave is having its day in the sun, its shares surged 29% in the past week after smashing expectations in its first quarterly results as a public company. Revenue hit $982 million, up 420% year-on-year, and a new $4 billion deal with OpenAI added to an already massive $12 billion contract.

Last night, Nvidia reported quarterly revenue of $44 billion, up 69%, and profits of $20 billion. These spectacular numbers would have been even stronger if they hadn't taken a $4.5 billion loss on chips designed for the Chinese market, now blocked by the US government. That inventory will have to be destroyed.

Every action produces a reaction, and leads to unintended consequences. When these actions are taken by interfering governments, the outcomes are usually negative. The recent situation involving Nvidia and China is a good example.

Nvidia has had a great week, rising from $116 to $135 per share. The rally is partly due to easing trade relations between the US and China. Perhaps more importantly, Saudi Arabia and the UAE have been given the green light from the White House to purchase billions of dollars worth of Nvidia chips. Currently, there are export restrictions on the most powerful Nvidia cards because of supposed "national security" concerns.

Nvidia is pivoting by bringing a significant chunk of its AI chip and supercomputer manufacturing to the US, partnering with TSMC, Foxconn, Wistron, Amkor, and SPIL. The company has committed over a hundred thousand square metres of space across Arizona and Texas, where production is expected to ramp up over the next 12 to 15 months.

Blackwell is old news, stand by for headlines about Rubin. I'm talking about AI chips from Nvidia. They've only just started shipping the former in a big way, and are already revealing details about the latter.

Nvidia's latest quarterly results showcased another top-notch performance, but the market reaction was not great. The shares opened in the green yesterday, but closed down 8.5%.

DeepSeek made more than just a massive impact on the market on Monday. It is also dominating the app charts in recent days. I saw some articles suggesting that the drop in Nvidia's share price is the least of the Western world's worries. DeepSeek officially marks the entry of Chinese companies in the race for Artificial Intelligence dominance.