Nvidia(US:NVDA) The Motley Fool·2024-12-01 10:10Core Viewpoint - Nvidia's stock has surged over 170% this year, driven by its dominance in the AI chip market and strong demand for its products, particularly the upcoming Blackwell architecture [1][2] Group 1: Company Performance - Nvidia has experienced massive earnings growth, with quarterly net income and revenue increasing in the triple digits recently [2] - The company was invited to join the Dow Jones Industrial Average and briefly surpassed Apple to become the world's most valuable company, with a market cap of $3.3 trillion [2] - Nvidia's market cap was less than $100 billion in 2019 and under $10 billion five years prior, showcasing significant growth [3] Group 2: Product and Market Expansion - Nvidia has expanded its focus beyond GPUs, which were historically its main product, to a wide range of AI products and services, positioning itself as a one-stop shop for AI customers [4][5] - The company shipped 13,000 GPU samples in Q3 and is ramping up production of its new Blackwell architecture [5] Group 3: Revenue Growth Trends - Revenue growth has slowed to 94% in Q3, reaching over $35 billion, with a forecasted 70% year-over-year growth for Q4, indicating a shift from triple-digit growth [6][7] - The comparison to last year's Q3 revenue of $5.9 billion shows a 490% increase, highlighting the challenges of maintaining high growth rates at larger revenue levels [9] - Despite the slowdown in growth rates, Nvidia maintains a gross margin of over 70%, indicating strong profitability and continued demand for its products [10]