nvidia stock gets lift from oracle's ai chip demand

2025-03-12 nvidia

New York, Wednesday, 12 March 2025.
nvidia’s stock saw a boost following oracle’s report of strong earnings fueled by soaring demand for ai chips. oracle, a key partner in trump’s stargate project, emphasized the robust demand. This surge positively impacted nvidia’s market performance. Investors are keenly observing nvidia’s partnerships. They are also watching its capability to satisfy the rapidly increasing need for ai technology. Industry analysts predict that the ai chip market is on a trajectory surpassing all previous forecasts.

revenue projections and market dynamics

Nvidia’s revenue exceeded expectations, reaching over $39 billion in a recent quarter, which included $35 billion from data center revenue [3]. The company anticipates Q1 2026 revenue to reach $43 billion [3]. This indicates a substantial increase from previous forecasts, as analysts initially predicted $33 billion for the October quarter [3]. Major tech companies like Amazon, Google, Microsoft, and Meta plan to increase their investments in AI data centers in 2025, projecting capital expenditures of at least $315 billion [3]. This is more than double the 2023 level of approximately $150 billion [3].

competitive landscape and gross margin

AMD has projected that the AI chip market will achieve $500 billion in sales by 2028, highlighting the intense competition and growth potential in this sector [3]. Nvidia’s gross margin experienced a decline from a peak of 78.9% in Q1 2025 to 73.5% in Q4 2025 [3]. The company anticipates a further decrease to 71.0% in Q1 2026 due to increased production of Blackwell chips [3]. Nvidia’s CFO stated that gross margins are expected to return to around 75% by the end of the fiscal year once Blackwell systems are in full production and costs are lowered [3].

stock performance and analyst perspectives

Nvidia’s stock price experienced a slight decrease on March 7, 2025, closing at $950, which was attributed to market corrections [3]. Despite beating analyst earnings estimates on February 26, Nvidia’s shares sank 8% the following day [1]. An analyst from TechInsights noted on March 7, 2025, that the demand for AI GPUs continues to outstrip supply [3]. This impacts short-term revenue growth [3]. Premarket trades on Tuesday saw Nvidia edging higher after Oracle reported results late Monday [1].

nvidia’s upcoming gtc 2025

Nvidia’s GTC 2025 is scheduled to take place from March 17-21 in San Jose [5]. This event will gather industry leaders to explore quantum computing concepts and the future of AI [5]. Nvidia CEO Jensen Huang will deliver a keynote address on March 18, focusing on ‘driving the next wave of AI’ [5]. The event offers insights into cutting-edge technologies shaping the future [5]. It remains to be seen whether GTC 2025 will catalyze another surge in investor sentiment surrounding Nvidia [alert! ‘Event has not yet occurred.’]

Bronnen

AI demand NVIDIA stock