Key Takeaways:
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- Nvidia shares rose 1.7% in premarket trading, driven by Foxconn’s optimistic AI server revenue forecast.
- Foxconn expects AI server revenue to surpass $30 billion by 2025, signaling robust demand for Nvidia’s GPUs.
- Nvidia’s upcoming GPU Technology Conference on March 18 could provide further catalysts with updates on AI chip advancements.
- Analysts remain bullish on Nvidia, with BofA Securities maintaining a $200 price target.
What Happened?
Nvidia’s stock climbed 1.7% to $117.49 in premarket trading, supported by positive signals from its key supplier, Foxconn. During its earnings call, Foxconn reported a decline in Q4 net profit but projected strong growth in AI server revenue, expecting it to double in Q1 and surpass $30 billion by 2025. Foxconn also announced plans to build the world’s largest manufacturing site for Nvidia’s GB200 Superchips in Mexico, reinforcing Nvidia’s position as a leader in AI hardware.
Why It Matters?
Foxconn’s bullish outlook on AI server demand highlights the sustained growth potential of Nvidia’s AI-related products, even amid broader economic uncertainties. Nvidia’s GPUs are critical to powering AI servers, and strong demand signals from a major supplier like Foxconn suggest continued revenue growth for Nvidia. With AI adoption accelerating across industries, Nvidia remains a key player in the AI hardware market, making it an attractive investment opportunity. Additionally, Nvidia’s upcoming GPU Technology Conference could further solidify its leadership with announcements on next-generation AI chips and long-term opportunities in autonomous vehicles and robotics.
What’s Next?
Investors will be closely watching Nvidia’s GPU Technology Conference on March 18, where CEO Jensen Huang is expected to unveil updates on the company’s AI chip roadmap, including advancements in the Blackwell Ultra and Rubin generations. Foxconn’s continued investment in AI server manufacturing will also be a key factor to monitor, as it underscores the scalability of Nvidia’s AI hardware. Analysts remain optimistic, with BofA Securities maintaining a Buy rating and a $200 price target, signaling confidence in Nvidia’s long-term growth prospects.
