AI Demand Expected to Grow Through 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Market Potential: Global data center capital expenditures are projected to reach $3 trillion to $4 trillion by 2030, providing significant market opportunities for companies like Nvidia, especially as AI applications continue to expand.
- Strong Growth Momentum: Nvidia achieved a remarkable 73% growth in the last quarter, with revenue expected to grow by 79% in Q1 and 85% in Q2, showcasing its robust performance and sustained growth potential in the AI market.
- Attractive Valuation: Although Nvidia's PE ratio stands at 38 times, factoring in future growth expectations lowers the forward PE to 22 times, indicating that the market may be underestimating its long-term growth prospects, potentially offering a buying opportunity for investors.
- Investor Confidence: Nvidia is viewed as a standout investment for the coming years; despite not being included in the Motley Fool Stock Advisor's top stock picks, its strong performance and market outlook make it a key holding for individual investors.
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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: 189.310
Low
200.00
Averages
264.97
High
352.00
Current: 189.310
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
Nvidia Stock Soars 1100% Amid AI Boom with Strong Growth Projections
- AI Market Potential: 2023 marks the unofficial start of the AI boom, with Nvidia's stock soaring over 1,100% since then, and projections indicate continued AI spending growth, leaving ample room for further stock appreciation before a potential slowdown in 2030.
- Insatiable GPU Demand: Nvidia's graphics processing units (GPUs) are in high demand, having expanded from gaming to applications in engineering simulations, drug discovery, and cryptocurrency mining, with AI being the largest use case yet to reach peak demand.
- Strong Capital Expenditure Outlook: Nvidia anticipates global data center capital expenditures could rise to $3 trillion to $4 trillion by 2030, representing significant growth potential, positioning Nvidia as a primary beneficiary in this expanding market.
- Impressive Financial Performance: Nvidia achieved a remarkable 73% growth in the last quarter, with revenue projections of 79% and 85% growth for the next two quarters, and despite a seemingly high P/E ratio, the stock is viewed as a bargain considering its future growth potential.
See More
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- Ten-Year Investment Growth: Even over the past decade, a $1,000 investment would now be worth $210,000, and while current stock prices may not reach all-time highs, new investors are still drawn to its growth narrative.
- Foundation of AI Revolution: Nvidia's GPUs play a crucial role not only in gaming and cryptocurrency mining but also as the backbone of AI development, solidifying its leading position in the industry.
- Future Growth Expectations: Nvidia's CEO anticipates that sales from its latest semiconductor platforms will reach $1 trillion annually by 2027, and despite cautious market sentiment regarding customer spending, its valuation presents an excellent entry point for new investors.
See More
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- Intel's Outlook: Despite an average target price of $54.50 among 50 analysts suggesting a 13% downside from its current price of $63, Intel faces significant competitive pressure from Arm and AMD, raising concerns about its future growth prospects in the data center market.
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- Price-Performance Advantage: Amazon's Trainium2 chips achieve a 30% price-performance improvement over similar GPUs, while Trainium3 offers a 30% to 40% enhancement, which is likely to attract more customers to AWS services and strengthen market competitiveness.
- Capital Expenditure Strategy: Despite Amazon's plan to spend $200 billion on AI infrastructure in 2023, Jassy believes this is a strategic move to capitalize on the rapid growth of AI, with expectations of monetizing much of this investment in 2027 and 2028, reflecting the company's confidence in future growth.
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See More
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- Intel's Market Challenges: Intel has faced significant market share losses in data center CPUs due to execution missteps, and while adjusted earnings are projected to grow 57% annually through 2027, its current valuation of 150 times adjusted earnings appears expensive, warranting caution from investors.
- CoreWeave's Advantages: CoreWeave's cloud infrastructure excels in AI tasks, offering 20% better GPU cluster performance compared to alternative clouds and is recognized as the best AI cloud on the market, highlighting its competitive edge in the rapidly growing AI sector.
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See More
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- Innovation Exploration: The partnership will utilize a structured co-innovation framework to design and evaluate new AI-RAN capabilities, particularly focusing on GPU-based radio processors to enhance radio performance and support new services such as Integrated Sensing and Communication (ISAC).
- 6G-Ready Platform Development: The collaboration aims to explore maximizing spectral efficiency for existing and future bands, including the upper 6 GHz band, ensuring a smooth software-defined migration to 6G and optimizing compute resource utilization across Orange's operational footprint.
- Commitment to Sustainability: Orange is dedicated to building more efficient, adaptable, and sustainable networks, and through collaboration with Nokia and NVIDIA, aims to deepen its understanding of how AI-native architecture can enhance the efficiency of key radio algorithms, thereby advancing its long-term network strategy.
See More
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- AI Market Potential: 2023 marks the unofficial start of the AI boom, with Nvidia's stock soaring over 1,100% since then, and projections indicate continued AI spending growth, leaving ample room for further stock appreciation before a potential slowdown in 2030.
- Insatiable GPU Demand: Nvidia's graphics processing units (GPUs) are in high demand, having expanded from gaming to applications in engineering simulations, drug discovery, and cryptocurrency mining, with AI being the largest use case yet to reach peak demand.
- Strong Capital Expenditure Outlook: Nvidia anticipates global data center capital expenditures could rise to $3 trillion to $4 trillion by 2030, representing significant growth potential, positioning Nvidia as a primary beneficiary in this expanding market.
- Impressive Financial Performance: Nvidia achieved a remarkable 73% growth in the last quarter, with revenue projections of 79% and 85% growth for the next two quarters, and despite a seemingly high P/E ratio, the stock is viewed as a bargain considering its future growth potential.
See More
Nvidia Stock Soars 460,500% Since IPO, Strong Growth Ahead
- Staggering Investment Returns: Since its IPO, Nvidia's stock has surged nearly 460,500%, transforming a $1,000 investment into $4.61 million, showcasing its exceptional investment value and market performance.
- Ten-Year Investment Growth: Even over the past decade, a $1,000 investment would now be worth $210,000, and while current stock prices may not reach all-time highs, new investors are still drawn to its growth narrative.
- Foundation of AI Revolution: Nvidia's GPUs play a crucial role not only in gaming and cryptocurrency mining but also as the backbone of AI development, solidifying its leading position in the industry.
- Future Growth Expectations: Nvidia's CEO anticipates that sales from its latest semiconductor platforms will reach $1 trillion annually by 2027, and despite cautious market sentiment regarding customer spending, its valuation presents an excellent entry point for new investors.
See More
Nvidia's Portfolio Analysis: AI Infrastructure Focus
- Portfolio Composition: As of December, Nvidia's portfolio is heavily weighted with 74% in two AI infrastructure stocks, comprising 61% in Intel and 13% in CoreWeave, indicating a strategic focus on the AI market.
- Intel's Outlook: Despite an average target price of $54.50 among 50 analysts suggesting a 13% downside from its current price of $63, Intel faces significant competitive pressure from Arm and AMD, raising concerns about its future growth prospects in the data center market.
- CoreWeave's Performance: CoreWeave, specializing in cloud infrastructure and software for AI tasks, is projected to see revenue growth exceeding 800% by 2029, with an annual growth rate of 73%, highlighting its strong position and attractiveness in the AI cloud market.
- Debt Concerns: While CoreWeave has secured numerous clients, including OpenAI, its substantial debt for data center construction has led to interest expenses consuming 23% of revenue in 2025, which poses a potential risk to its financial stability if this trend continues.
See More
Amazon's AI Chip Business Poised for Massive Growth
- AI Chip Business Growth: Amazon's custom AI chips are on a $20 billion annual revenue run rate and growing at a triple-digit rate, indicating significant potential impact in the cloud computing market and possibly becoming a major revenue source in the future.
- Price-Performance Advantage: Amazon's Trainium2 chips achieve a 30% price-performance improvement over similar GPUs, while Trainium3 offers a 30% to 40% enhancement, which is likely to attract more customers to AWS services and strengthen market competitiveness.
- Capital Expenditure Strategy: Despite Amazon's plan to spend $200 billion on AI infrastructure in 2023, Jassy believes this is a strategic move to capitalize on the rapid growth of AI, with expectations of monetizing much of this investment in 2027 and 2028, reflecting the company's confidence in future growth.
- Market Competition Outlook: Jassy hinted that Amazon may sell Trainium chips to third parties in the future, indicating an intention to compete with Nvidia, which could further expand market share and enhance the company's long-term profitability.
See More
Nvidia's Investment Portfolio Analysis: Focus on AI Infrastructure
- Portfolio Distribution: As of December, Nvidia has allocated 74% of its investment portfolio to two AI infrastructure companies, with 61% in Intel and 13% in CoreWeave, indicating a strong focus on the AI market and confidence in future growth prospects.
- Intel's Market Challenges: Intel has faced significant market share losses in data center CPUs due to execution missteps, and while adjusted earnings are projected to grow 57% annually through 2027, its current valuation of 150 times adjusted earnings appears expensive, warranting caution from investors.
- CoreWeave's Advantages: CoreWeave's cloud infrastructure excels in AI tasks, offering 20% better GPU cluster performance compared to alternative clouds and is recognized as the best AI cloud on the market, highlighting its competitive edge in the rapidly growing AI sector.
- Debt Risk Warning: Although CoreWeave is expected to see an 800% revenue increase by 2029, its rising debt burden, with interest expenses consuming 23% of revenue in 2025, poses a financial health risk if this trend continues.
See More
Nokia and Orange Advance AI-RAN Innovation with NVIDIA
- Strategic Partnership Expansion: Nokia and Orange are enhancing their collaboration to co-develop AI-RAN technologies supported by NVIDIA's AI infrastructure, aiming to improve network performance and energy efficiency, thereby facilitating Orange's network transformation across Europe and the Middle East and Africa.
- Innovation Exploration: The partnership will utilize a structured co-innovation framework to design and evaluate new AI-RAN capabilities, particularly focusing on GPU-based radio processors to enhance radio performance and support new services such as Integrated Sensing and Communication (ISAC).
- 6G-Ready Platform Development: The collaboration aims to explore maximizing spectral efficiency for existing and future bands, including the upper 6 GHz band, ensuring a smooth software-defined migration to 6G and optimizing compute resource utilization across Orange's operational footprint.
- Commitment to Sustainability: Orange is dedicated to building more efficient, adaptable, and sustainable networks, and through collaboration with Nokia and NVIDIA, aims to deepen its understanding of how AI-native architecture can enhance the efficiency of key radio algorithms, thereby advancing its long-term network strategy.
See More
