We recently published 10 Buzzing AI Stocks to Watch in September. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks to watch in September.
Guy Adami from CNBC Fast Money predicted in a program that NVIDIA Corporation (NASDAQ:NVDA) earnings will be “staggering,” but the “magnitude” of growth is getting smaller.
“I think it’s extraordinarily important. Go back to April and look what happened to the broader market. Look what happened. Nvidia went from, I think, 153 and change its all-time high. Chris probably has it right in front of him. Traded down to $90 on the April low. I mean, percentage-wise, that is a significant move. And obviously, the broader market, not necessarily on the back of that, but it pretty much acted in kind. So, I think it is important. I think you’re looking at a revenue quarter that’s probably north of 48 billion. I think the streets at 46. I think the numbers will be staggering, the size of the numbers. I think the concern should be the magnitude of the growth in terms of revenue growth for the forecast because the numbers are getting bigger, the percentages are getting smaller.”
Photo by Javier Esteban on Unsplash
Nvidia’s Hopper Infrastructure and now Blackwell form the core of AI infrastructure for LLM training and inference. But Nvidia’s growth is slowing compared to previous quarters amid competition and capex spending limitations from major companies. In the recently reported quarter, Nvidia’s annual revenue growth came in at 56%, compared with nearly 100% YoY growth in the past.
With its strong position in the data center market and rising demand, Nvidia is likely to keep growing, though not at the same pace it has in the past. Increasing competition from major companies like Broadcom is also expected to impact Nvidia’s margins in the long term.
Loomis Sayles Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the world leader in artificial intelligence (AI) computing, which enables computers to mimic human-like intelligence for problem solving and decision making capabilities. Founded in 1993 to develop faster and more-realistic graphics for PC-based video games, Nvidia created the first graphics processing unit (GPU), a dedicated semiconductor that employs a proprietary parallel processing architecture to perform superior graphics rendering outside of a computer’s standard central processing unit (CPU). The parallel processing capability of Nvidia’s GPUs, which contrasts with the linear processing requirement of CPUs, can accelerate computing functions performed by standard CPUs by greater than ten times. As a result, Nvidia extended its visual computing expertise beyond its legacy gaming market into innovative new and larger markets, including data centers, autos, and professional visualization. The parallel processing capability facilitates pattern recognition and machine learning functions that have enabled Nvidia to be at the forefront of growth in artificial intelligence applications. As a result, the data center business, which first surpassed the gaming business to become Nvidia’s largest revenue and profit generator in its 2023 fiscal year, grew to represent over 88% of revenue in the company’s most recent fiscal year. The company is also focused on building out its GPU-computing-based ecosystem and is helping to enable breakthroughs in autonomous driving, and virtual reality.
