Nvidia could be the ‘definitive winner of the AI ​​race’: strategist

As Nvidia (NVDA) prepares to report its first-quarter earnings for fiscal 2025, Hennion & Walsh CIO Kevin Mahn joins Market Domination to discuss expectations for the chipmaker and how they may impact the market (^DJI,^GSPC, ^IXICO).

The chip company is expected to post earnings per share of approximately $5.22, which will be a 406% year-over-year increase. Mahn says he expects Nvidia to announce more data centers, a critical component of the AI ​​ecosystem. He adds that there is a unique opportunity in energy companies, as data centers alone are estimated to consume around 10% of the country’s electricity by 2030.

Mahn says Nvidia “could be the ultimate winner of the AI ​​race” as it promises 25 times less cost and less electricity use in its new Blackwell chips. “Nvidia is trying to go beyond chips and offer the entire AI solution packaged, as well as getting more capex into data centers. They won’t stop here and will only continue to grow,” he adds.

For more expert insights and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl.

Video transcript

Yes that’s me. I was going to go there, Kat.

I wanted you to record an earnings video on deck tomorrow after the bell rings.

I, I want to, you know, explain to us what you expect there.

And how important is this for the market?

If it matters very much, expectations are for earnings per share of about $5.22.

If that comes to fruition, it will represent a year-on-year increase of 406%.

And I think NVIDIA will talk more about building its own data centers.

Data centers are often very forgotten.

Part of the AI ​​ecosystem.

In your previous segment you mentioned the tremendous demand for electricity coming from data centers.

It is estimated that by 2030 data centers will consume around 10% of our country’s electricity.

That’s tremendous, right?

But there are other companies that are stepping in to help address that same type of need.

A company like the ones we like in the industrial sector.

What do they do?

They supply electricity, infrastructure and cooling solutions to data centers.

How about a doll and nets?

They supply the Ethernet switches that power and run data centers efficiently.

There are many other opportunities besides NVIDIA, but they all focus on NVIDIA correctly. So is it a or a?

And it’s an A.

It’s clearly one and I don’t think you’ll abandon NVIDIA in any way.

They could be the ultimate winner of the air race.

But there are a lot more opportunities and just one specific question for NVIDIA because there was a report in the Financial Times today that Amazon was pausing its orders with NVIDIA.

Yes, he’s waiting for Blackwell to come out.

That’s the next generation of NVIDIA chips.

And this has been a concern among some investors and analysts because customers were saying, Well, we have the hopper chip that’s here.

We want the best one coming out later this year, so we won’t be ordering any more Hoppers.

We’re going to wait.

Is that a concern for an NVIDIA?

Is it going to cost you some setbacks?

Or do you foresee further positive earnings growth later in the year?

Blackwell promises 25 times lower cost and 25 times lower electricity consumption.

That’s powerful, and NVIDIA is trying to go beyond chips and offer a complete AI solution, as well as get more capex into data centers.

They will not stop here and will continue to grow.

And Blackwell will also be more expensive, by the way, but that’s also what it’s made of, although Kevin in this print is a headline wrapper.

I mean, it’s already up 90% this year.

I mean, expectations are red hot.

I mean, he’s clearly setting himself up for potential disappointment, but I don’t see that disappointment coming.

I think they’re going to move forward, looking toward Blackwell’s projected sales with deliveries expected in the second half of this year.

And then once they start focusing on data center expenses and growing in that market as well, I think it could go even higher.

Which is hard for me to say, because I’m a value-oriented investor and they’re trading at pretty high multiples right now.

But if earnings expectations are taken into account, it is not too expensive.

It’s always a pleasure to see you, Kevin.

Thanks for entering.

I appreciate it.