NVIDIA Started With Outperform Rating at William Blair, Cites AI Leadership and Explosive Growth in Data Center Revenue

NVIDIA (NASDAQ:NVDA) received a new bullish rating from William Blair, which initiated coverage with an Outperform rating, citing the company's leadership in parallel computing and dominance in the AI sector.

William Blair highlighted NVIDIA's long-standing expertise in designing parallel computing systems, which has driven the company’s expansion into high-growth areas like gaming, automotive, and high-performance computing (HPC). The firm noted that NVIDIA’s data center revenue saw explosive growth of 217% in 2024 and is projected to grow by another 132% in 2025, pushing revenue to over $110 billion, up significantly from $15 billion in 2023.

NVIDIA's growth is largely attributed to its system-level approach, which has expanded its total addressable market (TAM) from GPUs, worth about $100 billion, to encompass the broader $800 billion semiconductor market and the $1.6 trillion cloud services industry.

The report also emphasized NVIDIA’s robust software ecosystem, particularly CUDA, which boasts over 5 million active developers, along with strategic acquisitions like Mellanox and Cumulus, enhancing its capabilities in networking and systems engineering.