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Considering the Possibility of Missing Out on Nvidia Purchases? Here's the Major Factor Indicating Opportunity Persists.

Considering If Nvidia Purchases Seem Late Now? here's the Major Motive Justifying further...
Considering If Nvidia Purchases Seem Late Now? here's the Major Motive Justifying further Opportunities.

Considering the Possibility of Missing Out on Nvidia Purchases? Here's the Major Factor Indicating Opportunity Persists.

Nvidia's (NVDA 1.26%) shares are soaring, having increased by a whopping 170% in 2024. This remarkable surge follows an even more spectacular climb of around 240% in 2023. All told, the company's shares have skyrocketed over 900% since their low point in late 2022. Despite this outstanding performance, it's not too late to invest.

There are multiple reasons to believe that Nvidia will outperform the market in the future. However, for my perspective, the strongest reason is the persistent high demand for its chips.

The Demand is Unrelenting

I'd be nervous if there were any indications that demand for Nvidia's graphics processing units was waning, but frankly, there aren't any such signs. The demand for its current Hopper chips is still robust, and the company anticipates sales to remain steady into the following year, even as it's set to release Hopper's successor, codenamed Blackwell.

And the demand for the new Blackwell chips is off the charts, according to CEO Jensen Huang. So much so that despite attempting to increase capacity by constructing a new Blackwell-dedicated factory in Mexico, the next-generation chips are reportedly sold out up until the end of 2025.

The major tech CEOs are clamoring for Blackwell chips to fuel their data center expansion projects. Elon Musk, for instance, wishes to acquire a substantial amount of these chips to grow his xAI flagship supercomputer, Colossus. Currently, Colossus boasts 100,000 Hopper chips and aims to expand this to a million, with the majority being Blackwell chips. Whether this expansion is feasible or will happen by when remains to be seen. Nevertheless, the scale of demand should be evident.

Musk isn't the only one. While he's the most vocal, both Meta and Alphabet's management teams have indicated their intention to continue their substantial capital expenditures for data centers by maintaining their financial inflows.

The strong demand for Nvidia's chips, including the upcoming Blackwell, is driving significant investments in the finance sector. Companies like Tesla, Meta, and Alphabet are allocating substantial funds to acquire these chips for their data center expansion projects, recognizing their potential to boost performance and efficiency. This high demand for Nvidia's products suggests promising opportunities for financial gain through investing in Nvidia stocks.

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