Nvidia(US:NVDA) The Motley Fool·2024-12-14 08:40Nvidia - Nvidia is a leader in data center graphics processing units (GPUs), accounting for 98% of data center GPUs by shipment volume, essential for AI applications [4] - The company operates as an accelerated computing entity, providing complete data center systems and software libraries, positioning itself as "the world's de facto enabler of AI" [5] - In Q3 fiscal 2025, Nvidia reported a 94% revenue increase to $35 billion and a 103% rise in non-GAAP earnings to $0.81 per diluted share, with an anticipated 70% revenue growth in Q4 [6] - Wall Street estimates a 52% annual increase in Nvidia's adjusted earnings through fiscal 2026, making its current valuation of 53 times adjusted earnings reasonable [7] Vistra - Vistra is the largest competitive power producer in the U.S. with approximately 41,000 megawatts (MW) of capacity, becoming the second-largest nuclear power company after acquiring Energy Harbor [8] - The company has a strong presence in major wholesale electricity markets, particularly ERCOT and PJM, with data center electricity demand in these regions expected to increase fivefold in the next five years due to AI infrastructure [9] - U.S. electricity demand is projected to grow at 2.4% annually through 2030, driven by AI data centers, reshoring of manufacturing, and electrification efforts [10] - In Q3, Vistra's revenue rose 53% to $6.2 billion, with GAAP earnings increasing 320% to $5.25 per diluted share, leading to raised EBITDA guidance for 2024, 2025, and optimistic guidance for 2026 [11] - Wall Street anticipates a 24% annual earnings increase for Vistra through 2025, making its current valuation of 26.5 times earnings reasonable, with JPMorgan Chase naming it a "top pick" for 2025 [12]