TLDR:
- NVIDIA is positioned as a top pick in the AI sector by analysts
- CEO Jensen Huang expects billions in revenue from high-demand Blackwell GPUs
- NVIDIA has created a sustainable competitive advantage with its CUDA software stack
- The company is seeing strong demand from major tech firms building AI data centers
- Analysts project continued growth opportunities in AI training and inference markets
NVIDIA Corporation is cementing its position as a leader in artificial intelligence hardware, with analysts and the company’s CEO projecting major growth ahead. The chipmaker’s new Blackwell graphics processing units (GPUs) are seeing intense demand from tech giants building out AI infrastructure.
NVIDIA CEO Jensen Huang recently described demand for Blackwell GPUs as “insane” during a CNBC appearance.
He anticipates the new chips will generate billions of dollars in revenue in the coming months. Major companies like Microsoft and Meta are among those clamoring for the Blackwell units to power AI products and services.
The Blackwell GPUs are expected to cost between $30,000 to $40,000 per unit. Their high price tag and strong demand signal the value tech firms see in NVIDIA’s latest AI-focused hardware. The chips will be used to build and expand data centers running popular AI models and products like ChatGPT and Microsoft’s Copilot.

Analysts at William Blair recently named NVIDIA as a top pick among large-cap AI companies. They noted NVIDIA has already seen tremendous growth for its GPUs and parallel computing systems.
The analysts believe there is still substantial room for continued expansion, driven by robust training demand from cloud providers and enterprises, as well as growing opportunities in AI inference.
A key advantage for NVIDIA is its CUDA software platform, which has become the standard interface for working with GPUs in AI applications. This gives the company a “sustainable moat” in the AI chip market, according to the William Blair analysts.
The company’s dominant position comes as investment and competition in AI is heating up dramatically. The number of AI patents filed globally skyrocketed to over 60,000 in 2022, up from around 8,000 just four years earlier.
This suggests the AI sector is following historical patterns of attracting massive capital inflows and intensifying competition seen with previous transformative technologies.
While NVIDIA currently leads the pack, some analysts caution that early pioneers don’t always maintain dominance as a technology matures.
Peter Oppenheimer of Goldman Sachs notes that during the internet boom, telecom companies received significant investment, yet it was companies in areas like social media and ride-sharing that ultimately created the most value. As AI evolves, new companies could potentially emerge to reshape industries beyond the current tech giants.
For now, NVIDIA’s scale and profitability have positioned it well to absorb the high costs of AI investments. The company is ramping up production of its Blackwell GPUs to meet surging demand. It also continues to innovate, recently introducing new AI tools like Aerial to improve wireless networks.
NVIDIA’s stock price has surged this year along with other AI-related companies. However, analysts argue the rise is backed by strong financial fundamentals rather than speculative bubble behavior.
The tech sector’s earnings per share have increased 400% since the 2008 financial crisis peak, far outpacing the 25% growth seen in other sectors combined.
As of October 2024, 179 hedge funds held positions in NVIDIA stock, indicating strong institutional investor confidence. Analysts project an average upside potential of 22.10% for NVIDIA shares from current levels.
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