Nvidia Projects AI Infrastructure Spending to Reach $4 Trillion by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Source: Fool
- Massive Market Potential: Nvidia estimates that tech companies are currently spending $600 billion annually on AI infrastructure, projected to reach $4 trillion by 2030, which will significantly boost the company's revenue growth.
- Strong Financial Performance: In its most recent quarter, Nvidia reported $57 billion in revenue, with $51.2 billion coming from data center sales, showcasing its robust market position and profitability in the AI sector.
- Ongoing Product Innovation: Nvidia's Hopper and Blackwell chips have become best-sellers, and the anticipated release of the next-generation Rubin chip this year will further solidify its leadership in high-performance computing.
- Market Access Restoration: Nvidia has received U.S. government clearance to sell its H200 chip to China, with expected sales resuming soon, as China accounted for 13% of its profits in 2024, providing additional momentum for future growth.
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 255.63 USD with a low forecast of 185.00 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.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 185.040
Low
185.00
Averages
255.63
High
352.00
Current: 185.040
Low
185.00
Averages
255.63
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.
