Beyond Blackwell: The Hidden Catalysts Powering Nvidia's Next Leg Up (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• New growth drivers for Nvidia Corporation like sovereign AI, industrial AI, and humanoid robots seem underappreciated sources of continued revenue growth acceleration.
• Nvidia is adapting to export restrictions affecting China sales in the background, whilst lowering investor expectations in their commentary. This sets them up to deliver a positive beat on revenues.
• Management expects mid-70s gross margins in 2-3 quarters time as Blackwell chips ramp up production. But the Street is not yet baking this in, presenting scope for a positive surprise.
• Surprisingly, NVDA trades at a relative discount to peers, and technicals suggest a likely breakout above resistance, making the stock attractive for buyers.
• Some major hyperscaler customers are trying to in-source, which can put gross margin and revenue risks to Nvidia. But so far, their efforts are not a cause for concern, as NVDA remains the outrightly superior source of AI GPUs.

Read the full article here.