Nvidia revenue 79.7% outlook, AI rally 1999resembles
Comparisons have been made between the AI stock rally and the internet stock rally of 1999, and Nvidia revenue is expected to rise by 79.7%. The data center order backlog is expected to support momentum through 2027.
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Comparisons have been made between the current AI investment boom and the internet stock rally of 1999. The market views AI- and data center-related stocks as major growth areas. The explanation is that a trend has reemerged in which expectations are driving up share prices, as they did with internet stocks at the time.
NVIDIA was expected to report revenue growth of 79.7% and profit growth of 119.8% in its next quarterly results. Demand for AI accelerators and semiconductors for data centers was presented as central to expectations for its results. NVIDIA was cited as a company representing the current AI semiconductor trend.
Data center-related stocks were discussed as an area with strong growth expectations. A forecast was also presented that the trend could continue through 2027. The order backlog refers to orders placed by customers that have not yet been recorded as revenue.
The author described the current AI trend as a once-in-a-lifetime opportunity. The author also argued that investors should remain invested in stocks rather than exit the market. This view rests on the assumption that investment in AI and data centers will continue to grow.
The possibility of a strike by Samsung Electronics workers was also cited as a variable. The article said that a prolonged strike could worsen the shortage of memory chips. Memory chips are key components used in both AI servers and graphics processing units.
The article discussed AI, data centers, and memory semiconductors as part of the same trend. Expectations for Nvidia's earnings and the data center order backlog were cited as positive factors. A shortage of memory supplies and 1999a comparison with the market conditions of the year were among the risks cited.
Sources: Investing.com
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