Nvidia Forecasts $1.4 Trillion AI Data Center Spending by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Dominance: Nvidia commanded 92% of the data center GPU market in 2024, and despite increasing competition, its relentless technological innovation secures its leadership position, thereby reinforcing its profitability in the AI sector.
- Efficiency Gains: Nvidia's latest Blackwell chips are 25 times more energy-efficient than the previous Hopper processors, while the upcoming Vera Rubin chip is expected to reduce processing costs by 90% and use 75% fewer GPUs, further enhancing its competitive edge.
- Growing Orders: Nvidia reported a backlog of $500 billion for its Blackwell and Rubin chips, with CFO indicating that this figure may increase, reflecting strong demand for its products and signaling sustained revenue growth ahead.
- Data Center Spending Trends: Capital expenditures supporting AI data centers are projected to reach $1.4 trillion by 2030, positioning Nvidia as a primary beneficiary of this trend, which will yield significant financial returns.
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: 184.840
Low
200.00
Averages
264.97
High
352.00
Current: 184.840
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.
