Zaid

Based on recent order trends, Nvidia says that it's already tracking ahead of the demand assumptions it provided just a year ago.

So demand has been stronger than they projected themselves.

Now, remember what I said earlier that Nvidia is starting to face competition, especially when it comes to inference chips.

Well, the Wall Street General just reported that Nvidia is working on a chip specifically designed for inference computing.

For this new inference chip, they've incorporated technology from a startup called Grok that Nvidia essentially acquired last year for $20 billion.

Now, this chip hasn't even come out yet, and OpenAI has already agreed to be one of the largest customers of this chip.

So, Nvidia saw the inference threat from AMD and others, and they're moving to address it head-on.

Next, let's talk about agentic AI.

On the earnings call, CEO Jensen Huang declared that agentic AI inflection point has arrived, and he called it the next chat GPT moment for the industry.

Now, what agentic AI refers to is AI systems designed to execute complex, multi-step tasks with limited human supervision.

These are AI systems that don't just answer questions, they actually take action.

These AI systems could be used to monitor patient data in hospitals and flag issues, or detect cybersecurity threats and respond in real time, or maybe manage entire supply chains autonomously.

And the reason why the rise of AI agents matter for NVIDIA is up until now, NVIDIA's revenue growth had been heavily concentrated amongst a handful of hyperscalers.

But Agentech AI is expanding AI adoption into the enterprise world.

you know, I'm talking banks, hospitals, manufacturers, logistics companies, they're all gonna be needing computing power to run these AI agents.

So that means that Nvidia's customer base could get a lot broader.

Next up, let's talk about China because this might be the most underappreciated part of the bull case.

Right now, NVIDIA generates $0 in revenue from China.

Keep in mind, China is the largest semiconductor market in the world, yet NVIDIA makes no money from them.

And this is all because of export restrictions, but that might be changing soon.