Nvidia Stock: Increasing AI GPU Demand Points to Strong Earnings

“We have recently learned of an uptick in demand for AI GPUs,” notes the 5-star analyst. “Upside should be expected owing to the ever-increasing demand to build generative AI tools like ChatGPT. What is more surprising to us is the uptick is for lagging edge (A100/A800) GPUs. We expect this to result in revenue and margin upside in the CQ1 (April) result and CQ2 (July) outlook.”

According to the suppliers, during March, they saw an uptick in demand, and this has carried on into April and into the “forecasting horizon.” As Stein alludes to above, that would be expected for the H100 – Nvidia’s latest-generation Hopper architecture systems – particularly given all the excitement around ChatGPT. But the fact the “upside indicators” are coming from the A100 (lagging-generation, Ampere architecture systems) and A800 (the Ampere architecture GPU intended for the China market) is more puzzling.