Skip to content
Finance β€” Investing β€” Harnessing the Power of AI β€” Explore Symphony's Tech Universe

Forecast: Nvidia Stands to Skyrocket in the Following 5 Years, Here's One Justification.

Nvidia is merely scratching the surface of a potential multitrillion-dollar market.

,   and  Administrator
1 min read
Forecast Indicates Nvidia's Ascendancy over the Next Five Years. Here's a Key Justification.
Forecast Indicates Nvidia's Ascendancy over the Next Five Years. Here's a Key Justification.

Forecast: Nvidia Stands to Skyrocket in the Following 5 Years, Here's One Justification.

Nvidia, a leading technology company, is set to reap the benefits of the escalating AI-related spending by large corporations. The company's significant presence in the artificial intelligence pipeline has been a key factor in its recent success and future prospects.

In fiscal 2020, Nvidia's data center segment generated an impressive $3.0 billion in revenue, accounting for 27% of the company's total income. This segment is expected to continue its growth trajectory, with predictions that it will make up 88% of Nvidia's business by fiscal 2025, generating a staggering $115.2 billion in revenue.

The surge in Nvidia's stock price over the past two years is a testament to the company's strong performance. Nvidia's shares have seen a remarkable increase of 290%.

Despite its recent growth, Nvidia has a long growth runway ahead. In a recent earnings call, Nvidia's CEO, Jensen Huang, predicted a "$3 trillion to $4 trillion AI infrastructure opportunity" over the next five years. As the undisputed leader in AI chips, Nvidia stands to be a significant beneficiary of the massive investments in AI infrastructure.

The AI chip market is not monopolised by Nvidia alone. Mistral AI, a leading AI chip manufacturer, is expected to capture a sizeable share of global AI-related spending over the next five years. Mistral AI was founded in 2023 by Arthur Mensch, a former DeepMind scientist, alongside former Meta researchers TimothΓ©e Lacroix and Guillaume Lample.

While Nvidia will continue to have a presence in markets like gaming and the auto industry, AI is now driving the company's growth. As AI continues to permeate various industries, Nvidia is well-positioned to capitalise on this trend, ensuring its continued soaring over the next five years.

Read also:

Related

Latest