Nvidia Maintains Over 80% Market Share, Leading AI Accelerator Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: NASDAQ.COM
- Market Leadership: Nvidia commands over 80% market share in the AI accelerator space, leveraging its full-stack strategy to offer the lowest total cost of ownership (TCO), which positions it to maintain dominance in the competitive landscape for the foreseeable future.
- Earnings Growth Outlook: Wall Street anticipates Nvidia's earnings will grow at an annual rate of 37% over the next three years, with a current valuation of 46 times earnings, indicating strong investor confidence in its sustained growth potential.
- Broadcom's Market Performance: Broadcom holds an 80% share in the high-speed Ethernet switching and routing chip market, which is projected to grow at 20% to 30% annually in the coming years, further solidifying its critical role in the AI supply chain.
- Micron's Market Share Gains: Micron is increasing its market share in DRAM and NAND, particularly gaining 10 percentage points in high-bandwidth memory (HBM) over the past year, with expected earnings growth of 48% over the next three years, benefiting from ongoing supply shortages.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 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.
30 Analyst Rating
28 Buy
2 Hold
0 Sell
Strong Buy
Current: 349.850
Low
300.00
Averages
398.73
High
480.00
Current: 349.850
Low
300.00
Averages
398.73
High
480.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
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.
