TLDR:
- NVIDIA currently trading at $140.52, showing strong performance after Q3 2024 earnings
- Revenue hit $30 billion, up 122% YoY, with EPS beating estimates at $0.68
- Stock up 923% in past two years, driven by AI-related growth and data center demand
- Major customers concentration poses risk despite dominant market position
- Trading at 36x forward earnings with analysts projecting continued but variable growth through 2030
NVIDIA (NASDAQ: NVDA) continues to ride the artificial intelligence wave, with its stock trading at $140.52 as of October 29, 2024, following exceptional Q3 2024 earnings results that showcased the company’s dominant position in AI hardware.
The chip giant reported quarterly revenue of $30 billion, marking a 122% increase year-over-year, while earnings per share reached $0.68, surpassing analyst estimates of $0.64.
This performance has helped drive NVIDIA’s stock up by 923% over the past two years.
The company’s Compute & Networking segment emerged as the primary growth driver, generating $26.3 billion in revenue during Q2 fiscal 2025, representing a 16% sequential increase and a 154% year-over-year jump. This growth was largely attributed to strong demand for NVIDIA’s H100 data center GPUs.
Technical analysis shows the stock currently faces resistance at $145.00, with a major psychological barrier at $150.00. Support levels have established at $136.15 and $130.03, which have held firm in recent months.
NVIDIA’s networking division has shown particularly strong momentum, with revenue reaching $3.7 billion in Q2, marking a 114% year-over-year increase. The company’s Spectrum-X product line is projected to become a multibillion-dollar business within the next year.
Looking ahead, Bank of America analyst Vivek Arya projects NVIDIA could capture $272 billion in AI computing revenues by 2030. However, broader analyst consensus suggests more moderate growth, with estimated cumulative revenue of $1.29 trillion between fiscal years 2025 and 2030.
The company faces several challenges despite its strong market position. A notable concern is NVIDIA’s unusual level of customer concentration for a company of its size, with several major tech companies accounting for substantial portions of revenue.
The global artificial intelligence market is expected to grow from $621.19 billion in 2024 to $2,740.46 billion by 2032, according to Fortune Business Insights, representing a compound annual growth rate of 20.4%.
NVIDIA continues to innovate, with its upcoming H200 and Blackwell B200 architectures promising improved performance. The Blackwell architecture claims to deliver 30 times greater inference performance while consuming 25 times less energy for large AI models.
Competition is emerging from AMD and Intel, though these competitors are currently focused on undercutting NVIDIA’s prices rather than outperforming its products. NVIDIA maintains a competitive advantage through its CUDA software platform, which has become an industry standard.
The stock currently trades at 36 times forward earnings, reflecting high growth expectations. Analysts project a trading range of $140-220 a year from now, though some warn that a recession could push the price below $100.
Current resistance levels suggest near-term challenges at $145.00, while support at $136.15 has provided a reliable floor for the stock price.
NVIDIA’s networking revenue hit $3.2 billion in Q1 fiscal 2025, showing a 242% year-over-year increase, demonstrating growth across multiple segments.
Technical indicators suggest sustained price above $140.00 signals strength, though a break below $136.15 could trigger a retreat toward $130.03.
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