Attention, Nvidia Shareholders: 1 Crucial Thing to Watch in the Second Half

Core Insights - Nvidia experienced significant stock volatility in the first half of the year, with a nearly 30% decline from the start of the year to early April due to concerns over AI spending and economic impacts from tariffs [1] - Despite initial challenges, Nvidia launched its Blackwell platform and achieved double-digit quarterly revenue growth, finishing the first half with a 17% stock gain, driven by strong demand in AI inference and international expansion projects [2] Company Performance - Nvidia has successfully transitioned from primarily serving the video gaming market to becoming a leader in the AI industry, with data center revenue constituting 88% of total revenue in the latest quarter [5] - The company has established a strong position in the AI chip market, with a commitment to annual updates of its chips and architectures, exemplified by the successful rollout of the Blackwell architecture, which generated $11 billion in revenue during its first quarter [6] Upcoming Developments - The upcoming launch of the Blackwell Ultra platform is a critical milestone for Nvidia, with expectations of significant performance improvements, including a potential fiftyfold increase in output for reasoning model inference compared to the previous Hopper architecture [7] - Monitoring the demand and execution of the Blackwell Ultra rollout will be essential, as successful sales figures and gross margins during the earnings season could indicate continued growth and investor optimism [8] Market Leadership - Nvidia's ability to innovate and effectively launch new products is crucial for maintaining its market leadership, as demonstrated by the high demand for the Blackwell platform, which at times exceeded supply [10] - A successful Blackwell Ultra launch could further enhance Nvidia's stock performance in the second half of the year, reinforcing investor confidence in the company's growth trajectory [11]