Latest news with #Blackwell-powered
Business Insider
3 days ago
- Business
- Business Insider
Nvidia Stock (NVDA) Is on Fire—But Can the AI Boom Keep It Going?
Nvidia (NVDA) stock closed at a record $164.92 on July 11, capping a strong week where it gained more than 4%. The stock also briefly crossed the $4 trillion market cap mark on July 9, reinforcing its position as one of the most valuable companies in the world. With five gains in the last six sessions, momentum is clearly holding as investors look ahead to next month's earnings. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Much of that strength is tied to ongoing demand for Nvidia's AI chips. Its latest Blackwell platform is witnessing strong adoption, with cloud players like CoreWeave (CRWV) deploying Blackwell-powered servers in their data centers. Nvidia has also partnered with companies like Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), and Super Micro Computer (SMCI) to deliver Blackwell-based systems globally. Why Wall Street Is Still Bullish on NVDA Analysts say early demand for Blackwell is encouraging, and with earnings and growth holding strong, many believe there's still room for the stock to climb. In its Q1 FY26, Nvidia posted $44.06 billion in revenue, up 69.2% year-over-year, driven by record demand in its data center segment. Also, earnings per share came in at $0.81, which beat analysts' consensus estimate of $0.74 per share. Recently, Goldman Sachs analyst James Schneider began coverage on Nvidia with a Buy rating and a $185 price target. He pointed to the company's leadership in AI and rising demand across industries. Despite the stock's strong run, Schneider sees more upside ahead and views it as a solid entry point for long-term investors. Several top firms share the same view. Bernstein, UBS, and Citi have all reiterated Buy ratings, with price targets between $175 and $200. Analysts see Nvidia as more than just a chipmaker—they view it as the core supplier of the tools that power AI across the globe. All Eyes on August Earnings The next big catalyst is Nvidia's Q2 FY26 earnings report, expected on August 27. Wall Street analysts expect the company to post earnings of $1.00 per share, on revenue of $45.62 billion. Investors will be watching closely to see if the company can keep up its strong growth. A key watch point is China-related headwinds, after Nvidia took a $4.5 billion hit to Q1 FY26 revenue due to U.S. export restrictions on its H20 chips. If the company gives strong guidance or raises its outlook, the stock could break out again. But if the update falls short, or if China worries return, there could be some short-term pressure. Is Nvidia a Good Stock to Buy? According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 37 Buys, four Holds, and one Sell assigned in the last three months. The average Nvidia stock price target is $176.29, suggesting a potential upside of 6.89% from the current level.
Business Wire
20-05-2025
- Business
- Business Wire
Infobip Enhances AI Capabilities With NVIDIA DGX B200
VODNJAN, Croatia--(BUSINESS WIRE)--Global communications platform Infobip has deployed NVIDIA DGX B200 systems in its data center infrastructure, marking a significant step forward in its commitment to advancing artificial intelligence capabilities. Infobip will utilize the supercomputer for the IPCEI-CIS project, an EU initiative focused on developing a next-generation global communications platform to enhance Europe's competitiveness. The project aims to safeguard Europe's digital sovereignty by ensuring better alignment with EU regulations on data protection and transparency. The combination of Communications Platform as a Service (CPaaS) and Contact Center as a Service (CCaaS) platform features with AI provides powerful tools to enhance customer experience. According to Gartner®, 'By 2028, generative AI will drive conversational CX in 80% of enterprises, up from 20% in 2024' [1]. NVIDIA DGX B200 systems are equipped with eight NVIDIA Blackwell GPUs and an impressive 1.4TB of GPU memory, along with two fifth-generation Intel Xeon CPUs per module. This supercomputer serves as an AI accelerator, specializing in both the training and inference of AI models. Damir Prusac, vice president of Research Alliances at Infobip, said: "At Infobip, we're excited to begin utilizing NVIDIA DGX B200, harnessing its capabilities for the IPCEI-CIS project. This system allows us to advance our AI model development and deployment, enabling us to deliver faster and more efficient AI-driven solutions, and strengthening our position as a leader in innovation and technology." 'Global communications platforms face increasing demands for secure, efficient and scalable AI solutions,' says Carlo Ruiz, vice president of Enterprise Solutions at NVIDIA. 'The NVIDIA Blackwell-powered DGX platform delivers the performance and flexibility needed to tackle the most complex AI workloads, empowering innovators like Infobip to accelerate development and deployment of transformative solutions for the next generation of digital communications.' About Infobip Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey.
Yahoo
17-05-2025
- Business
- Yahoo
Is Super Micro Computer Stock a Buy Now?
Supermicro's stock has dropped about 60% from its all-time high. Its revenue growth is slowing down, and its gross margins are declining. But if it stabilizes its business, it looks undervalued relative to its growth potential. 10 stocks we like better than Super Micro Computer › Super Micro Computer (NASDAQ: SMCI), more commonly known as Supermicro, went on a wild ride over the past year. The maker of artificial intelligence (AI) servers closed at a record split-adjusted high of $118.81 on March 13, 2024, which marked a 1,020% gain over the previous 12 months. At the time, investors were impressed by its brisk sales of liquid-cooled AI servers, which ran on Nvidia's high-end data center graphics processing units (GPUs). But today, Supermicro trades at about $47. Supermicro lost its luster as it struggled with a delayed 10-K filing due to accounting issues, the departure of its auditor, delisting threats, and regulatory probes. Its slowing growth and declining gross margins also indicated it was losing its pricing power against its larger competitors. The company finally hired a new auditor, filed its overdue 10-K this February, dodged a delisting, and seemed to placate the regulators. But its growth is still cooling off as the macro and competitive headwinds intensify across the evolving AI market. So should investors still buy its stock today? Supermicro is still an underdog in traditional servers compared to market leaders like Hewlett Packard Enterprise and Dell Technologies. But it carved out a niche with its dedicated AI servers, and Raymond James estimates it now controls about 9% of that growing market. Its close relationship with Nvidia also gave it access to a steady supply of top-tier data center GPUs. Supermicro's revenue surged 46% in its fiscal 2022 (which ended in June 2022), 37% in fiscal 2023, and 110% in fiscal 2024. Its gross margin expanded from 15.4% in fiscal 2022 to 18% in fiscal 2023 as the AI market heated up. But its gross margin declined to 14.1% in fiscal 2024 as it faced tougher competition and relied on aggressive pricing strategies to sell more servers. Over the past year, its revenue growth continued to cool off as its gross margins shrank. Metric Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue growth (YOY) 201% 144% 180% 55% 19% Gross margin 15.5% 11.2% 13.1% 11.8% 9.6% Data source: Supermicro. YOY = year-over-year. Many of its customers postponed their new AI server purchases in anticipation of Nvidia's next-gen Blackwell chips, while supply chain constraints made it harder to fulfill its existing orders. The macro headwinds exacerbated that pressure by forcing many companies to rein in their spending on pricey AI servers. As a result, its inventory levels rose, its pricing power waned, and its gross margins contracted. For the fourth quarter of fiscal 2025, Supermicro expects its revenue to grow at a midpoint of 13% year over year as it ramps up its production of Blackwell-powered servers and data center building block solutions -- which bundle its AI servers and software for quick deployments. For the full year, it expects its revenue to rise 46% to 51%. That outlook is still impressive, but it was scaled back from its prior outlook for 57% to 67% growth. Analysts expect its revenue to rise 48% in fiscal 2025, 36% in fiscal 2026, and 25% in fiscal 2027. We should take those estimates with a grain of salt, but investors shouldn't expect it to grow as rapidly as it did over the past three years. That slowdown wouldn't be surprising, since Hewlett Packard Enterprise, Dell, and other major server makers have been rolling out more dedicated AI servers for the booming market. Supermicro established an early mover's advantage in the space, but it doesn't have much of a moat against those rivals. Supermicro still faces a lot of macro and competitive challenges, but it also looks like a bargain at 18 times next year's earnings. The AI server market could still have a compound annual growth rate of 34.3% from 2024 to 2030, according to MarketsandMarkets Research, so there could be plenty of room for Supermicro, Hewlett Packard Enterprise, and Dell to grow without trampling one another. If you believe Supermicro can defend its niche with its high-end liquid-cooled servers, its stock might be worth accumulating as it trades far below its all-time highs. But investors should watch its gross margins closely to see if it can maintain its pricing power in this tough market. Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor's total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Is Super Micro Computer Stock a Buy Now? was originally published by The Motley Fool
