I think Nvidia is undervalued because the future is much bigger. The ongoing spending trends in artificial intelligence will only accelerate in the years ahead, benefiting Nvidia and its GPU chip business, which has been the driving force behind most AI advancements.
To achieve that level of AI, it will require upwards of 200 million GPU chips and $9 trillion in total capex spending by companies. I say it's still very reasonable capex. $9 trillion is not too big, maybe too small.
If artificial superintelligence replaces just 5% of GDP in 10 years, it has the potential to deliver as much as $4 trillion in profits annually.
Son envisions artificial superintelligence by 2035, requiring significant investment. His increased optimism for Nvidia stems from the increased AI spending and the company's pivotal role in the AI economy.
Collection
[
|
...
]