Down 43%, Will Nvidia Become a Trillion-Dollar Stock?
Shares of tech behemoth Nvidia Corporation (NASDAQ: NVDA) have nosedived 43% year to date as part of a broader tech retreat linked to high inflation and the rising interest rate environment. In response to the unfriendly macroeconomic backdrop, the chip maker recently downgraded its previous guidance for second-quarter revenue, which it's set to report after hours on Aug. 24. While its latest financial situation is far from ideal, it's essential that investors steer clear of short-term headwinds and focus on the long-term trajectory of Nvidia's business.
According to Allied Market Research, the global graphics processing unit (GPU) market is forecast to be worth $201 billion by 2027, equal to a compound annual growth rate (CAGR) of 33.6% from 2020. At the moment, Nvidia controls 21% of the market, so it's not incredibly difficult to envision long-term success for the tech giant. With an enterprise value of $417.2 billion today, will Nvidia eclipse a $1 trillion market value in the future? Let's find out.
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Source Fool.com
