Blackwell Demand to Benefit Both Nvidia and Taiwan Semiconductor
Increased Orders for Blackwell GPUs:
Recent reports from Taiwan indicate that demand for Nvidia's (NASDAQ: NVDA) next-generation Blackwell GPUs is so robust that Nvidia has increased its orders at Taiwan Semiconductor Manufacturing (NYSE: TSM) by 25%. TSMC will start producing Blackwell GPUs using 4-nanometer technology soon.
Surge in Terminal Server Cabinets Demand:
Demand for Nvidia's terminal server cabinets has also surged, with shipments now expected to reach 60,000 units, up from 40,000. Most shipments will be of the GB200 NVL36 model, which includes 36 GB200 Superchips, 18 Grace CPUs, and 36 enhanced B200 GPUs, costing around $1.8 million per unit.
Analyst Upgrades and Price Targets:
UBS: Raised its price target for Nvidia from $120 to $150, projecting $5 in earnings per share next year.
Keybanc: Increased its target from $130 to $180, anticipating $200 billion in data center revenue by 2025.
Wolfe Research: Upped its target from $125 to $150, expecting over 50% GPU growth.
Analyst reports indicate strong Blackwell demand, with multiple sources confirming robust sales. The demand for AI infrastructure is driving this growth.
Investment Considerations:
Despite strong historical performance—TSMC stock up over 300% and Nvidia up over 2,500% in the past five years—both stocks are still reasonably valued. Nvidia trades at a forward P/E ratio of about 43 times, and TSMC at about 27 times. Given their growth prospects, these multiples are not considered expensive.
Future Prospects:
Nvidia is already developing its next architecture, Rubin, slated for release late next year. Nvidia's strong position is supported by its CUDA software platform and continuous innovation, which helps maintain its leadership in the GPU market.
Increased Orders for Blackwell GPUs:
Recent reports from Taiwan indicate that demand for Nvidia's (NASDAQ: NVDA) next-generation Blackwell GPUs is so robust that Nvidia has increased its orders at Taiwan Semiconductor Manufacturing (NYSE: TSM) by 25%. TSMC will start producing Blackwell GPUs using 4-nanometer technology soon.
Surge in Terminal Server Cabinets Demand:
Demand for Nvidia's terminal server cabinets has also surged, with shipments now expected to reach 60,000 units, up from 40,000. Most shipments will be of the GB200 NVL36 model, which includes 36 GB200 Superchips, 18 Grace CPUs, and 36 enhanced B200 GPUs, costing around $1.8 million per unit.
Analyst Upgrades and Price Targets:
UBS: Raised its price target for Nvidia from $120 to $150, projecting $5 in earnings per share next year.
Keybanc: Increased its target from $130 to $180, anticipating $200 billion in data center revenue by 2025.
Wolfe Research: Upped its target from $125 to $150, expecting over 50% GPU growth.
Analyst reports indicate strong Blackwell demand, with multiple sources confirming robust sales. The demand for AI infrastructure is driving this growth.
Investment Considerations:
Despite strong historical performance—TSMC stock up over 300% and Nvidia up over 2,500% in the past five years—both stocks are still reasonably valued. Nvidia trades at a forward P/E ratio of about 43 times, and TSMC at about 27 times. Given their growth prospects, these multiples are not considered expensive.
Future Prospects:
Nvidia is already developing its next architecture, Rubin, slated for release late next year. Nvidia's strong position is supported by its CUDA software platform and continuous innovation, which helps maintain its leadership in the GPU market.