Nvidia continues to make significant strides in the technology sector, particularly in artificial intelligence (AI) and graphics processing units (GPUs). In the third quarter of 2024, Nvidia reported a remarkable 109% increase in net income, reaching $19.3 billion, driven by surging demand for AI-related chips. Quarterly sales also saw a 94% year-over-year rise, totalling $35.1 billion. Despite these impressive figures, Nvidia’s shares experienced a slight decline of 2.3% in after-hours trading, as investors assessed the sustainability of such rapid growth.
However, in January 2025, Nvidia faced a significant market setback, with its stock experiencing a 17% drop on January 27, erasing nearly $600 billion from its market capitalization—the largest single-day loss by a U.S. company. This downturn was largely attributed to competitive pressures from emerging AI companies like DeepSeek. Since then, Nvidia’s stock has been on a recovery trajectory, with shares rising 0.4% to $139.40 as of February 18, 2025.
Recently, Nvidia unveiled its GeForce RTX 50-series graphics cards, featuring the RTX 5070 priced at $549. This new series boasts performance comparable to the previous generation’s RTX 4090 but at a more accessible price point. The RTX 5080 and RTX 5090 became available on January 30, while the RTX 5070 and RTX 5070 Ti are slated for release in February. These GPUs incorporate GDDR7 video memory and leverage Nvidia’s DLSS 4 technology to enhance gaming performance through AI-generated frames.
In the AI sector, Nvidia introduced the Blackwell architecture in March 2024, designed to cater to the growing demands of generative AI applications. The Blackwell-based B100 and B200 data-centre accelerators have received endorsements from major tech companies, including Google, Meta, Microsoft, OpenAI, and Oracle. Despite initial design challenges, the Blackwell chips have seen robust demand, with reports indicating that the entire 2025 production is already sold out.
We are hopeful for a continued rally in price beyond the high to $153 as the current price is at $137.85.
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