- Nvidia is poised to profit from the AI revolution, with a projected $2.6-$4.4 trillion boost to the global economy from Generative AI. The chipmaker leads in data center GPUs, controlling up to 98% of the market. Nvidia’s dominance in earlier versions of AI and robust R&D spending solidify its position.
- Nvidia’s expertise in AI positions it as a leader in the generative AI space, with market share estimates ranging from 70% to 95%. The company’s CUDA platform and ecosystem support over 3,700 GPU-accelerated applications, making it the preferred choice for developers. Nvidia’s expansion into adjacent markets further fuels its growth.
- The explosion of generative AI has driven Nvidia’s profitability, with revenue surging 126% YoY in fiscal 2024. Diluted EPS soared 586%, and Q1 FY25 saw revenue grow 262% YoY. Analysts expect continued growth, with Q2 revenue projected at $28-28.6 billion. Shareholder returns are increasing, with a 150% dividend increase.
- Despite Nvidia’s high valuation metrics, its forward PEG ratio suggests the stock is undervalued. The company’s growth trajectory and dominance in AI technologies position it for continued success. The Motley Fool’s Stock Advisor team identified Nvidia as one of the best stocks for investors, offering a blueprint for success and guidance on building a portfolio.
Read more at Nasdaq: 10 Reasons to Buy Nvidia Stock Like There’s No Tomorrow