From Nasdaq: 2024-11-15 05:06:00

The internet revolutionized corporate America, but now Artificial Intelligence (AI) is poised to be the next game-changer on Wall Street. AI offers vast utility and is projected to boost global GDP by $15.7 trillion by 2030. Nvidia has emerged as the clear winner of the AI revolution, with its market cap skyrocketing to $3.56 trillion.

Nvidia’s GPUs have dominated the market, with the company accounting for 98% of GPUs shipped to data centers in recent years. This dominance has allowed Nvidia to command premium prices for its hardware, leading to a significant increase in gross margin. The company’s CUDA platform has also played a crucial role in its growth.

Despite Nvidia’s impressive growth, internal competition poses a significant threat to its dominance. Major tech companies like Microsoft, Meta, Amazon, and Alphabet are developing their own AI chips for data centers, potentially eroding Nvidia’s market share. This internal competition could lead to a decline in Nvidia’s margins and market position.

Investors are urged to consider the potential impact of internal competition on Nvidia’s future growth and profitability. While the company has seen exceptional success in the AI market, the entry of major competitors could pose challenges in the coming years. It’s essential to monitor how Nvidia navigates this evolving landscape to assess its long-term investment potential.



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