"Nvidia now controls more than 90% of the discrete GPU and data center GPU markets, and nearly all of the world's top cloud and AI companies use its chips. It locks in those customers with CUDA (Compute Unified Device Architecture), its proprietary programming platform optimized for its own chips. In other words, it has plenty of room to grow because it will continue to sell the best picks and shovels for the AI gold rush for the foreseeable future."
"Nvidia might face competition from cheaper data center GPU makers like AMD and custom AI accelerator chips built by its top customers, but its first-mover's advantage, "best in breed" reputation, and CUDA's stickiness should continue to drive its long-term growth. Its sales to China could also rise again if the U.S. relaxes its export curbs for AI-related chips. From fiscal 2025 (which ended this January) to fiscal 2028, analysts expect Nvidia's revenue and adjusted EPS to grow at a CAGR of 46% and 29%, respectively."
"Over the past seven years, the market capitalizations of several top tech companies soared past the $1 trillion mark. Those gains were largely driven by the secular expansion of the cloud, artificial intelligence ( AI), digital advertising, and chipmaking markets. Two of those high-flying trillion-dollar stocks were Nvidia and Meta Platforms . Investors might be reluctant to invest in these two stocks after their gains over the past few years, but I think they're still safe to double up on right now."
Market capitalizations of several top tech companies surpassed $1 trillion over the past seven years driven by cloud, AI, digital advertising, and chipmaking expansion. Nvidia's stock surged over 21,000% in the past decade to a $4.3 trillion market cap, propelled by strong data center GPU sales for machine learning and AI workloads. Nvidia controls more than 90% of the discrete and data center GPU markets and retains customers via its proprietary CUDA platform. Competition from AMD and custom accelerators exists, but analysts forecast Nvidia revenue and adjusted EPS CAGRs of 46% and 29% from fiscal 2025 to 2028. Meta Platforms is identified alongside Nvidia as a high-value tech stock benefiting from digital advertising and AI-related growth and remains considered a safe buy despite recent gains.
Read at The Motley Fool
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