Nvidia, the AI chip giant, with a staggering market cap exceeding $3 trillion, is anticipated to conclude the Magnificent's reporting towards the end of November. This was highlighted in a recent discussion with Toshiya Hari, the head of U.S. semiconductor research for Goldman Sachs, who maintains a favorable buy rating on Nvidia. During the dialogue, Hari revealed key insights from his recent engagements with Jensen Huang, Nvidia's CEO, emphasizing the enduring strength of demand, despite supply chain challenges. According to Hari, the demand landscape is expanding, transcending traditional hyperscalers and reaching enterprises and governmental bodies as well. While concerns about competitive threats persist, especially from emerging startups in the AI space, Nvidia's capability to innovate across various sectors, such as developing its CPU and software solutions, strengthens its competitive moat. Looking ahead, there are questions around the sustainability of demand, particularly for calendar year 2026, as capital expenditures from major customers might temper gross margins. However, analysts remain optimistic about Nvidia's stock trajectory, projecting potential all-time highs rooted in impressive EPS forecasts for 2025. As Nvidia moves forward amidst fierce competition, itβs steadfast in its innovation, similar to a ship navigating through turbulent waters while remaining firmly on course towards its destination.
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