Nvidia Shares Are Moving Higher: What's Happening?

NVIDIA Corp. NVDA shares are climbing Thursday. On Wednesday, CEO Jensen Huang confirmed the company's highly anticipated Blackwell chips are in full production. 

The Details:

Huang appeared on CNBC's Closing Bell Overtime on Wednesday and said Nvidia's Blackwell chips are in production and in high-demand. 

"Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane," the Nvidia CEO said. "Everyone wants to have the most, and everyone wants to be first."

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Blackwell chips, which were introduced in March, are expected to begin shipping in the fourth quarter. Huang said previously that demand for the new chips is so great that it is causing some tension and frustration among Nvidia's customers. 

Analysts predict intense demand for Blackwell chips will produce strong fourth-quarter revenue for the company, and Beth Kindig at I/O Fund sees the potential of the chip driving Nvidia to a $10 trillion valuation. 

Nvidia's stock is outpacing the markets on Thursday and trading above its 50-day moving average of $115.79, according to Benzinga Pro.

NVDA Stock Prediction 2024:

NVIDIA’s revenue growth in FY23 was 0.22%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 4.83%, while PPI recently came in at 0.2%, growing 1.7% from last year. The unemployment rate was most recently reported as 4.2%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for NVIDIA stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against NVIDIA's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. NVIDIA operates in the Information Technology sector. The stock has experienced average annual growth of 83.79% compared to the 9.48% average of its peer companies. This is above the broader sector movement of NVIDIA.

NVDA Price Action: According to Benzinga Pro, Nvidia shares are up 3.43% at $122.93 at the time of publication Thursday.

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