Nvidia's Growth Outlook Over the Next Three Years Remains Positive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Data Center Investment Driving Growth: Major tech companies like Alphabet, Meta, and Amazon plan to increase capital expenditures to nearly $500 billion in 2023, primarily for AI data center construction, which will directly boost Nvidia's processor sales and solidify its 81% market share.
- Revenue and Earnings Projections Surge: Analysts estimate that by 2029, Nvidia's annual revenue will reach $468 billion and earnings will hit $246 billion, representing over threefold growth from fiscal year 2025, indicating strong long-term growth potential.
- Potential Stock Volatility: Despite Nvidia's stock soaring 791% over the past three years, concerns about an AI bubble may lead to volatility, prompting investors to temper expectations, especially amid recent pullbacks in tech stocks.
- Potential to Outpace the Market: With ongoing investments in AI data center infrastructure, Nvidia's commanding lead in AI processors positions it well to potentially outperform the S&P 500 over the next three years, showcasing robust market competitiveness.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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