From Nasdaq: 2024-05-19 05:00:00

Nvidia’s stock price has soared to around $925 from under $50 five years ago, driven by the company’s expansion into AI technology. The surge in revenue, especially from data centers, has propelled Nvidia’s growth, with predictions of revenue increasing by 234% for the next quarter. The company is well-positioned to capitalize on the growing demand for AI-related services, which is expected to drive further growth.

Nvidia’s GPUs, originally used for graphics and gaming, are now crucial for training AI models like ChatGPT. The company’s data center revenue has skyrocketed by 409% year over year, making up 83% of its total revenue. This rapid growth is supported by projections that enterprise spending on data centers will double to $2 trillion by 2030, indicating a promising outlook for Nvidia’s future growth potential.

While investors have bid up Nvidia’s stock price in response to its impressive revenue growth, the company’s dominance in the GPU market and its supply of components for data centers suggest that its momentum is likely to continue. With the ever-increasing investment in AI and cloud services, Nvidia remains a strong contender for sustained growth and value for shareholders.

Investors pondering over whether to invest in Nvidia should note that the company was not one of the 10 best stocks identified by The Motley Fool Stock Advisor team. However, historical data suggests that investing $1,000 in a recommended stock back in 2005 could yield significant returns, as exemplified by a $1,000 investment turning into $566,624. The Stock Advisor service provides strategic guidance and regular stock picks, consistently outperforming the S&P 500 since 2002.



Read more at Nasdaq: Why Is Nvidia’s Stock Price So High?