Semiconductor stocks have been on fire over the past year or so as the sector received a nice shot in the arm from rising demand for artificial intelligence (AI) chips, which explains why shares of chip giant Nvidia have jumped a whopping 216% in the past year.

Nvidia boasts a 92% share of the data center GPU (graphics processing unit) market, and that dominant position has led to outstanding growth in the company's revenue and earnings in recent quarters. It could also lead to another solid year of growth for Nvidia given the massive opportunity in AI chips.

According to a forecast by investment banking firm Raymond James, the market for chips powering generative AI applications could double in 2024. Given Nvidia's position in that market, that growth should translate into a huge revenue bump: Third-party estimates foresee the company generating $76 billion in data center revenue this year. That would be a substantial jump over the $44 billion data center revenue Nvidia may have clocked in its fiscal 2024 (which ended Jan. 31).

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Source Fool.com