Where Will Nvidia's Soaring Stock Be in 5 Years?
With a market cap of $1.69 trillion, Nvidia (NASDAQ: NVDA) has already soared 34% so far in 2024 as optimism continues to swirl around its artificial intelligence (AI) chip business, which is expected to boost near-term growth and margins. But Nvidia's long-term story looks just as bright. Let's discuss the strategies this technology giant can use to maintain its momentum over the next five years and beyond.
Over the last two years, one product type has powered most of Nvidia's growth: AI-capable graphics processing units (GPUs) like the a100 and h100, which help train and run generative AI applications like ChatGPT. Nvidia records sales of these chips under its data center segment, which expanded by an eye-watering 279% year over year to $14.51 billion in the third quarter. However, the company could soon play a bigger role in the software side of the fast-growing AI industry.
According to analysts at IT analytics and investment firm Melius Research, Nvidia could be on the cusp of an "Apple-like transformation" as IT uses its hardware business as a springboard to expand into software, much like the iconic smartphone maker used its iPhone to drive adoption of iOS and the app store.
Source Fool.com
