Nvidia Forecasts $3-4 Trillion Data Center Spending by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: NASDAQ.COM
- Strong Market Demand: Global data center capital expenditures are projected to reach $3-4 trillion by 2030, which will drive Nvidia's continued strong performance in AI infrastructure, thereby solidifying its market leadership.
- Technological Edge: Nvidia's graphics processing units (GPUs) are regarded as the best parallel processing option, and with ongoing investments from AI hyperscalers in data center buildouts, Nvidia's business outlook appears increasingly promising.
- Shifting Competitive Landscape: AMD forecasts a compound annual growth rate (CAGR) of over 60% for its data center division revenues over the next three to five years, indicating that its competitiveness in the GPU market is strengthening and could pose a challenge to Nvidia.
- Investment Opportunities: As AI technology rapidly evolves, investors should focus on AI hardware companies, including Nvidia, which are expected to deliver significant shareholder returns in the coming years, especially against the backdrop of sustained growth in data center demand.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 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.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 204.680
Low
200.00
Averages
281.78
High
350.00
Current: 204.680
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
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.
