Nvidia continues to dominate AI infrastructure market with potential for growth in demand for GPUs

From Nasdaq: 2024-12-06 05:40:00

Nvidia’s dominance in GPUs for AI infrastructure has given it a 90% market share. Despite its stock’s significant growth, it remains attractively priced with a forward P/E ratio of about 31 and a PEG ratio of approximately 1. Future GPU demand, driven by tech giants and AI startups, will be crucial for Nvidia’s growth as they require exponentially more computing power for advanced models.

Nvidia’s GPUs have a wide moat and are designed to be backward-compatible, unlike Cisco’s routers that became obsolete quickly. Tech giants like Amazon, Alphabet, Meta Platforms, and Microsoft are investing heavily in AI infrastructure, indicating a growing demand for computing power. Nvidia’s stock is still a buy due to the increasing need for powerful GPUs in AI development.

Consider investing in Nvidia as it continues to be a big AI winner. The Motley Fool Stock Advisor team has identified the 10 best stocks for investors to buy now, with Nvidia not currently on the list. Stock Advisor has a history of success, outperforming the S&P 500 since 2002. Investing $1,000 in Nvidia years ago could have yielded significant returns, making it a potential opportunity for future growth.



Read more at Nasdaq: Nvidia Stock: Buy, Sell, or Hold?