AI Chip Market Poised for Significant Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Surging Market Demand: According to Precedence Research, the global AI chip market is projected to expand at a CAGR of 27.9% from 2026 to 2035, reflecting strong demand driven by large language models and generative AI applications, which enhances the long-term growth potential for related companies.
- Competitive Landscape: Nvidia and AMD primarily produce high-performance GPUs, with Nvidia's H100 data center GPUs priced around $25,000 and AMD's MI300X chips at approximately $15,000, indicating that while AMD offers lower prices, it must enhance its market share to compete with Nvidia's dominance.
- Broadcom's Market Positioning: Broadcom focuses on custom AI accelerator chips for large clients, and although its products are less flexible than Nvidia and AMD's GPUs, bundling them with networking switches and infrastructure software strengthens its competitive edge in the data center market.
- Future Growth Expectations: Analysts anticipate that Nvidia, AMD, and Broadcom will continue to see revenue growth in the coming years, with Nvidia expected to grow at a CAGR of 47%, AMD at 34%, and Broadcom at 38%, indicating a shared growth potential among the three companies within the AI supply chain.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 187.670
Low
200.00
Averages
264.97
High
352.00
Current: 187.670
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.
