/NVIDIA%20Corp%20logo%20on%20phone%20and%20AI%20chip-by%20Below%20the%20Sky%20via%20Shutterstock.jpg)
Technology giant Nvidia (NVDA) is an American semiconductor company that designs and manufactures computer chips. The company is widely known for inventing the world’s first graphics processing units (GPUs). In addition to GPUs, the company is also involved in the development of autonomous vehicles, quantum computing, metaverse, artificial intelligence (AI), robotics, and more.
Nvidia’s stock has had a dream run, gaining more than 2,000% over the past five years and close to 180% in 2024. With a market capitalization of $3.37 trillion, it lags just behind Apple (AAPL) as one of the largest companies in the world.
Despite its monumental gains, the stock is facing some pressure in 2025 as it is trading nearly 10% below its 52-week high.
Nvidia Announces Quantum Day
Nvidia hosts an annual event known as the GPU Technology Conference (GTC) focusing on artificial intelligence, data science, and computer graphics. The event is attended by developers, researchers, leaders, IT decision-makers, and students.
In a recent announcement by the company regarding its GTC 2025 event, the company has declared a dedicated day for quantum computing which it is referring to as “Quantum Day.” Quantum computing is an interesting and exciting field in computer science that represents huge potential. Experts believe that quantum computing will unlock new capabilities in fields like drug discovery and material development. As a result, Nvidia has decided to dedicate a day at its GTC for quantum computing on March 20, 2025.
The move will allow industry leaders to discuss goals and projections related to quantum computing. Nvidia will also hold sessions to discuss past accomplishments, its own involvement in quantum computing, and general educational information.
In addition to Nvidia CEO Jensen Huang, top executives from other companies like Alice & Bob, D-Wave (QBTS), Atom Computing, IonQ (IONQ), Rigetti Computing (RGTI), Quantum Circuits, and Infleqtion will be in attendance.
The announcement comes days after Huang’s comments regarding the quantum computing industry which led to a crash in quantum computing stocks. Huang said that the most useful quantum computers are still 15-30 years away.
Nvidia Posts Strong Results
Nvidia’s most recent quarterly earnings came on Nov. 20, 2024, when the company posted its third-quarter results for fiscal 2025, reporting a profit of $19.31 billion, or $0.81 per share on an adjusted basis. This beat analysts’ $0.75-per-share estimates. On the revenue front, it posted a total of $35.08 billion, easily beating Wall Street forecasts of $33.33 billion.
Nvidia‘s operating margin improved to 62.3% from last year’s 57.5%, while its gross margin dipped to 74.6% from 75.1% reported in the same quarter last year. The company ended the quarter with a cash balance of $38.48 billion, up from $25.98 billion posted at the end of January 2024 while its free cash flow (FCF) increased to $16.78 billion.
For the ongoing fourth quarter, it expects revenue of $37.5 billion at the midpoint, plus or minus 2%, with non-GAAP gross margin further dipping to 73.5% and operating expenses anticipated at $3.4 billion.
Should You Buy NVDA Stock?
Nvidia has been a top pick among analysts and the stock still commands a consensus “Strong Buy” rating. The stock has a mean price target of $176.55, reflecting upside potential of 25% from the current market price. The stock is being monitored by 43 analysts with 36 “Strong Buy” ratings, three “Moderate Buy” ratings, and four “Hold” ratings.
