If this Wall Street analyst is correct, Nvidia shareholders will see Monster return until the end of the decade.
Beth Kindig, main technology analyst at the E / S fund, has an impressive assessment where the flea manufacturer Nvidia (NVDA 1.81%)) is concerned. In 2021, she properly predicted that the company would exceed AppleMarket value within five years. Nvidia checked this box in three years.
Earlier this year, Kindig properly called an opportunity to buy when Nvidia’s stock crashed after the Chinese startup Deepseek introduced low -cost language models. The share price has increased by 28% since it made this recommendation, and it is currently negotiated at a record level.
However, the most daring prediction in Kindig is that Nvidia will be a company of 10 billions of dollars by 2030.
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Nvidia dominates GPU markets in the data center and AI networking equipment
NVIDIA is best known for developing graphic treatment units (GPU), chips commonly used to speed up long data center workloads such as machine learning models and the execution of artificial intelligence applications (AI). Nvidia dominates space with more than 90% market share, according to Beth Kindig.
Mike GUALTIERI at Forrester Research In a recent report, commented: “Nvidia establishes the rhythm of AI infrastructure in the world. Without the GPUs of Nvidia, modern AI would not be possible.”
Above all, the company also completes its GPUs with processors and interconnections, as well as Ethernet and Infiniband networking platforms. In fact, Nvidia is the market leader in generative AI networking and he recently added AlphabetGoogle and Meta-platforms to its growing list of customers.
In the future, Grand View Research estimates that the GPU market in the data center will extend to 36% per year until 2033. And Morningstar expects that the generative network of networking will increase to 34% per year until 2028. This gives Nvidia a good blow to the annual growth of income exceeding 30% for many years to come.
Nvidia is likely to maintain its leadership as the AI physical revolution takes place
Chatgpt popularized the generative AI, which uses major language models to transform invites into new media such as text, images and video. This technology has created a huge demand for NVIDIA AI infrastructure, and the company is well positioned to maintain its leadership as the physical AI boom takes place.
Physical AI allows autonomous machines to understand and navigate in the real world, and Nvidia is aimed at three-layer technology in the computer battery: its data center GPUs and networking platforms form AI models, its omavers simulation engine generates synthetic training data and AI models, and its on-board processors offer a power computing for autonomous and cars autonomous.
Beyond that, the Cuda de Nvidia platform includes code libraries, application frameworks and pre-extended models that accelerate the development of robotics and car software. This vertical integration makes Nvidia the essential option for engineers and developers, because it eliminates the complexity of the integration of products from several suppliers, which ultimately reduces the total cost of possession.
Indeed, Beth Kindig says that Nvidia has an “quasi-monopoly in the construction of supercomputers” due to the “impenetrable pits” created by his Cuda software platform. It also cites vertical integration – the fact that the company provides data center components far beyond GPU – as a major reason for which Nvidia can reach a market value of 10 billions of dollars at the latest in 2030.
NVIDIA’s actions are negotiated with a reasonable assessment in relation to the estimates of term profits
Nvidia reported solid financial results in the first quarter which exceeded expectations on the upper and lower lines. Turnover increased by 69% to $ 44 billion due to solid AI infrastructure demand, and net profit that is not in accordance with PCAP increased by $ 33% per diluted share. The profits would have increased more quickly without the new export restrictions of china -related fleas.
Wall Street estimates that NVIDIA’s adjusted profits will increase to 41% per year throughout the financial year ending in January 2027. Long -term investors should feel comfortable having the action at its current price.
Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Trevor Jennewine has positions in Nvidia. The Motley Fool has positions and recommends the alphabet, apple, meta-plates and nvidia. The Motley Fool has a policy of disclosure.
