Nvidia Sales Surge to $187 Billion, Capturing 92% of AI GPU Market Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Market Share Leadership: Nvidia commands a staggering 92% market share in AI data center accelerator GPUs, which has propelled its trailing twelve-month sales to $187 billion, reflecting a nearly 600% increase since the beginning of 2023, solidifying its dominance in the competitive tech landscape.
- Robust Investment Outlook: With trillions of dollars expected to flow into global data centers, Nvidia is well-positioned for prolonged growth, although rising competition from rivals and customers seeking alternatives introduces market uncertainties.
- Significant Valuation Risks: Nvidia's price-to-sales ratio of 25 indicates that its stock is trading at a high valuation, prompting investors to exercise caution and consider waiting for a market dip before making purchases to mitigate risk.
- Innovation-Driven Growth: As AI technology rapidly evolves, the demand for Nvidia's products continues to surge, and despite competitive pressures, its technological leadership in the industry is likely to drive future growth potential.
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: 187.540
Low
185.00
Averages
255.63
High
352.00
Current: 187.540
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.
