The most important news from NVIDIA’s (NASDAQ:NVDA) GTC developers conference is that no new, market-moving development was announced. There was no new surge in demand, no new game-changing technology, and no catalysts to buy.
Details were revealed affirming NVIDIA’s industry-leading position, the importance of the CUDA platform, and the long-term outlook for revenue growth and earnings strength.
The takeaway is that NVIDIA’s stock price remains range-bound in 2025; it is at risk of hitting the range’s low end before rebounding but presents an ultra-deep value compared to the long-term earnings outlook.
Highlights From NVIDIA’s GTC Cement Its Position in AI
The highlights from NVIDIA’s GTC conference include updates on the GPU product lineup, new partnership reveals, and forecasts for computing needs that strengthen the outlook for demand.
Regarding products, NVIDIA is working to build out a full-stack, AI-empowered radio network with Cisco (NASDAQ:CSCO) and T-Mobile US (NASDAQ:TMUS), developing AI applications for automotive with General Motors (NYSE:GM), and working on numerous other AI-related projects with IBM (NYSE:IBM), Micron (NASDAQ:MU), Super Micro Computer (NASDAQ:SMCI), and ServiceNow (NYSE:NOW), among others.
The takeaway is that businesses across sectors, industries, and verticals are leaning into AI and leveraging NVIDIA’s first-mover advantage and expertise to do it. The critical detail is that data center build-out continues to gain momentum and will likely sustain the trend for at least another few years. According to CEO Jensen Huang, demand from the top four hyperscalers for Blackwell GPUs is nearly 3x that of the previous generation.
The upcoming AI models will require at least 100 times more computing power than initially estimated. The next generation of models will produce agentic AI capable of pursuing goals and making decisions without human assistance.
NVIDIA Affirms Product Cycle and Revenue Growth Outlook
NVIDIA’s Blackwell is in full production, but the next generation of products is already in line. The company will release the Blackwell Ultra in H2 2025, providing increased memory, speed, and performance relative to the original.
The Rubin is slated to enter production late in H1 2026 and become available in the second half of that year. It will include the next generation of HBM memory, HBM4, along with increased processing units for training and inference.
The long-term outlook for NVIDIA’s revenue and earnings growth is robust. The company is forecasted to grow revenue and earnings at a mid-teens CAGR through the middle of the next decade, and the estimates are likely low.
In this scenario, the stock’s low valuation in 2025 is amplified, leaving it at less than 10x the 2035 forecast, with growth expected to continue.
Details for investors to focus on are that this business, which has doubled in size twice since 2022, will grow more than 150% over the next decade and drive incredible value for shareholders, including robust cash flow and equity gains.
NVIDIA’s Cash Pile Grew Substantially in 2024
NVIDIA’s balance sheet highlights the strength of its AI business and the value it brings to investors. The cash balance grew 66% in 2024 to over $43 billion, leaving the company in a net cash position relative to total liability despite increased and aggressive investment in AI.
The balance assures the company’s continued success and increases the odds of accelerating capital return with each passing quarter. Currently, the company pays out less than 2% of its earnings as dividends and repurchases token amounts of stock.
Analysts are bullish on NVIDIA, forecasting higher share prices and a fresh all-time high by the end of the year. However, the stock price action in early 2025 is tepid and will likely remain range-bound until later in the year. The most recent action took the price below the range’s mid-point, increasing the odds that it will retest its low end before setting a new high. 