Nvidia CEO highlights strong demand for new AI chip as stock surges
fool.com —
Nvidia's stock has surged 2,600% over five years, driven by its dominance in the AI chip market, where it holds 80% share. The company has seen significant revenue and profit growth, attracting major clients like Meta and Amazon. CEO Jensen Huang recently described demand for Nvidia's upcoming Blackwell AI chip as "insane," indicating strong interest despite high prices. This demand suggests that Nvidia's competitive position remains robust against rivals like Intel and AMD. Nvidia plans to update its GPUs annually, maintaining its innovation edge. While shares trade at 44 times forward earnings, analysts view this as reasonable given Nvidia's strong market presence and growth potential.