Nvidia, based in Santa Clara, California, has become a household name in the realm of artificial intelligence (AI). Renowned for its graphics-processing units (GPUs), pivotal in AI development, the company’s market value has soared to $2.27 trillion, tripling its shares in the past year. Jensen Huang, the CEO and co-founder, even earned a spot on Time magazine’s list of the 100 most influential people of 2024.
Anticipated to enter mass production in the fourth quarter of 2025, Nvidia’s next-gen AI chip, the R-series/R100, aims to enhance power consumption efficiency and AI computing capabilities, according to analyst Ming-Chi Kuo. Collaborating with Mitre, a major supplier to the Pentagon and U.S. intelligence, Nvidia is spearheading a $20 million supercomputer project to expedite AI deployment across the U.S. federal government.
Mitigating some recent concerns about an overheated AI market, billionaire investor Stanley Druckenmiller revealed a reduction in his Nvidia holdings, citing a possible overvaluation amid the AI surge. Nevertheless, he remains optimistic about the long-term prospects of AI technology.
Ahead of Nvidia’s upcoming quarterly earnings release on May 22, analysts are closely monitoring the company’s performance. Despite a year-to-date rally, Goldman Sachs reaffirmed its bullish outlook, citing strong AI server demand and positive earnings-per-share revisions. The firm raised its price target on Nvidia to $1,100 and emphasized the company’s robust growth trajectory and relatively attractive valuation compared to peers.
