Jensen Huang Just Gave Investors 1 Incredible Reason to Buy Nvidia Stock Hand Over Fist

Core Insights - Wall Street analysts are underestimating Nvidia's growth potential, with CEO Jensen Huang announcing a demand of half a trillion dollars for the company's chips through 2026, leading to a surge in stock prices [1][2][4] Demand and Revenue - Nvidia's leadership in the AI chip market, particularly in GPUs, has resulted in a 56% year-over-year revenue increase in fiscal Q2, indicating strong demand for its products [2][5] - Huang highlighted that Nvidia has visibility into $500 billion of cumulative demand for its Blackwell and upcoming Rubin chips over the next five quarters, suggesting robust future revenue [3][4] Market Position and Competition - Nvidia's trailing-12-month revenue stands at $165 billion, with analysts projecting it to reach $278 billion next year, likely leading to upward revisions of estimates [4][9] - Despite increasing competition from custom AI chip designers, Nvidia's general-purpose GPUs are still preferred for their ability to handle large workloads, providing reassurance to investors [7][9] Strategic Partnerships and Investments - Nvidia is making significant investments, including $1 billion in Nokia for AI-powered telecommunications and collaboration with Oracle to develop an AI supercomputer for the Department of Energy [8] Stock Valuation - Nvidia's stock is currently trading at a forward price-to-earnings multiple of 33, which is considered reasonable given the company's earnings growth rate, suggesting attractive return prospects [6][9]