Nasdaq futures rise 2% as Nvidia ignites global rally

At first glance, the story after Nvidia’s (NVDA) most notable earnings day is about the financials themselves.

It’s crazy to see this kind of growth at Nvidia’s scale:

  • Total turnover: +265% compared to last year

  • Data center: +409% compared to last year

  • Visualization: +105% versus last year

The company’s guidance was equally impressive.

But once the shock and awe wears off, I think you’ll see The Street delve into Nvidia and really try to determine how this company grows in 2025 and 2026. There’s been some talk on the street this morning that Nvidia could start to see a sharp slowdown in growth next year as big tech companies like Microsoft scale back their AI spending after two tough years of investment.

To that emerging debate, I offer this important point from Stifel analyst Ruben Roy.

Roy doesn’t deny that Nvidia’s growth miracle will cool off next year, but claims they won’t take off because of the work the company is doing to diversify its revenue base.

Roy says:

“As questions about the sustainability of Nvidia’s growth increased, we found management’s commentary on revenue diversification noteworthy. In addition to continued networking and software growth, Nvidia’s total data center revenue is increasingly diversifying across industries and regions, including a growing contribution from demand related to sovereign AI deployments. This diversification, in our view, is likely to continue as AI-related ROI for end users accelerates.

“Nvidia continues to believe that the migration from general purpose computing to accelerated computing represents a $1 trillion longer-term opportunity. As the AI ​​Factory concept becomes a reality, management believes that…

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