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Nvidia's Blackwell GPUs Set for 2025 Launch, Analysts Confident in Strong Revenue Growth

The Nvidia stock remains promising with special potential for the Blackwell GPU to be released in early 2025. Analysts continue to be positive as they expect serious growth within the company led by performance in the market of the AI chip.

Solid demand for the chip:

Given the initial signs that the product might just be "booked out" for the whole year, the new Blackwell GPUs are going to be very highly in demand. The Blackwell GPUs form a key component in the vision of Nvidia to further dominate the AI chip market, after which it already enjoys a market share of over 80 percent in AI accelerators.

Revenue Growth Truly Impressive for Nvidia

Nvidia analysts have been paying close attention to the aggressive growth of its revenues. The company is anticipated to report a phenomenal 83% year-over-year growth for the third quarter of fiscal 2025. 

Blackwell will contribute to a revenue growth spurt, at least partly because analysts expect the product to generate between $5 billion and $8 billion in its first quarter of 2025. That will be substantially more than the money already coming from data centres from the earlier generation Hopper GPUs.

Nvidia's AI supremacy

Its ability to continue growing will significantly depend on the company's continued market leadership in AI. Among Big Tech companies, Amazon, Microsoft, and Alphabet are increasing their AI investment with much vigor, and Nvidia's GPUs remain their preferred providers of infrastructure for AI. 

The latter is likely to benefit from increased AI spending; Big Tech will spend nearly $240 billion for AI-related capital expenses in 2024 alone. Nvidia is one of the major players in this field and enjoys high margins, so it will continue to ride the wave of growth in the AI market.

Impact on Blackwell's Margins and Growth

Thus, while Nvidia might feel a bit concerned by the contraction in short-term margins, the pricing power is still quite strong. The Blackwell GPUs will have higher margins than previous generations, and systems like the DGX B200 are priced at a premium.

With pricing strength coupled with the ramp-up of Blackwell expected in 2025, healthy margins are expected to be sustained by Nvidia even as growth slows further in the next quarters.

Analysts' Confidence in the Nvidia Stock

Most analysts rated Nvidia as a "Buy," and some even set the price target at $150, while others at $1603. Being that the company shows effective revenues through both its hardware and software, its stock is still well worthwhile in investment, especially at this time before launching Blackwell.

As a Final Point

With Blackwell being touted to pilot Nvidia's growth in 2025 and beyond, investors may find it an astute play to buy the stock on its dips. Demand for AI infrastructure likely continues to go upwards in the future, so Nvidia will find itself in a good position to take a long lead over peers. 

Watching Nvidia stock would see launch and Q3 earnings reports come through more clearly for those who see what's on the way for the company's future performance.