What you need to know for NVDA stock

Nvidia (NASDAQ: NVDA), the most popular and one of the fastest-growing major companies in the world in 2024, recently concluded its October AI Summit.

The event, held in Washington D.C. from October 7 to October 9, was focused on news and developments regarding the chipmaker’s efforts to advance artificial intelligence technology.

Though it acknowledges the already-present success of the new Blackwell chip by revealing eight companies are already working on systems that integrate it, much of the summit was profoundly forward-looking. 

Nvidia showcases an ambitious AI future

Specifically, the semiconductor giant highlighted its work on improving AI model performance via new hardware, such as the GB200 NVL72 system components, and software, such as NVIDIA Inference Microservices (NIMs).

Additionally, Nvidia called attention to the fact that the further advancement of AI would increase the need for efficient networking as it plays a far greater role in inference – the use of what the platform has learned – than in training.

Simultaneously, the growing energy demand of data centers that power the technology was also brought up. According to Evercore’s estimates, new power plants designated specifically for this purpose will be needed.

It is worth noting that Microsoft (NASDAQ: MSFT) recently secured a deal to repower the Three Mile Island nuclear reactor to supply its artificial intelligence with energy.

Finally, Nvidia sought to address some persistent concerns about the actual profitability of the technology by highlighting its possible real-world application.

For example, Lockheed Martin (NYSE: LMT) uses AI for advanced target processing. 

Still, this may not be the most bullish of examples as a late 2023 report described other AI targeting systems as a ‘mass assassination factory,’ and living humans tend to be better investors, engineers, and inventors than dead ones.

The less deadly example provided was Siemens’ (ETR: SIE) use for complex simulations and autonomous drone inspections.

What is next for NVDA stock

Though Nvidia has already gained immensely from the AI boom in the stock market – it saw its market capitalization rise about $2 trillion in just 2 years – the showcase at the October event promises even more growth ahead.

This performance has persisted in 2024, and NVDA shares are priced at $134.72 on October 10 after a 179.57% year-to-date (YTD) rise, and, given the semiconductor giant’s current price-to-earnings (P/E) ratio, some of that rise banks on future advancements.

The priced-in hopes may be fulfilled as Nvidia has been something of a busybody of late as it is not only a critical supplier of hardware, but is also participating in some immense projects aimed at boosting available AI infrastructure.

Additionally, some of its estimates – like the expectation that Blackwell chip production will be increased through the fourth quarter (Q4) of 2024 – align with expert opinions that NVDA stock will reenter a major rally sometime in April 2025.

Furthermore, Nvidia might be set for growth well beyond this and next year, as the company’s CEO, Jensen Huang, recently revealed plans to create AI infrastructure revolutions akin to Blackwell every year.