500 Billion Reasons to Buy Nvidia Stock Like There's No Tomorrow

Core Viewpoint - Nvidia is poised to achieve record data center revenue, driven by high demand for its GPUs and a significant order backlog of $500 billion for new chips over the next five quarters [1][6][12] Group 1: Financial Outlook - Nvidia's CEO Jensen Huang announced a $500 billion order book for the new Blackwell and Rubin GPUs, indicating strong future revenue potential [5][6] - The actual backlog figure is estimated to be closer to $307 billion, which is expected to be recognized over the next year [11] - Nvidia's data center division is now generating more than $30 billion in revenue quarterly, showcasing substantial growth compared to previous years [12][13] Group 2: Market Reaction - Following the announcement of the order backlog, Nvidia's market capitalization surged to over $5 trillion [6] - Investors are optimistic about Nvidia's growth trajectory, which is expected to exceed Wall Street's current expectations [14][16] Group 3: Product Demand and Development - The demand for Nvidia's GPUs has created a virtuous cycle of sales and reinvestment into developing more powerful architectures [3][10] - Approximately 30% of the demand for Blackwell chips relates to units already shipped, meaning some revenue has already been recognized [10] Group 4: Investment Perspective - Nvidia's forward price-to-earnings (P/E) ratio of 30 is considered reasonable given its robust sales pipeline and expanding profitability [16] - Nvidia is viewed as a compelling buy-and-hold opportunity for technology investors, suitable for long-term portfolios [17]