This Chip Stock Could Be Worth More Than Nvidia in 10 Years
The excitement around artificial intelligence (AI) that OpenAI's ChatGPT kicked off last year has helped propel Nvidia's (NASDAQ: NVDA) market capitalization to well over $1 trillion.
Nvidia's center GPUs are widely used to train advanced AI models, and it's struggling to get enough made to meet demand. warned in its annual report that a new risk factor was its ability to secure enough GPUs to meet soaring demand for cloud AI services. Nvidia will sell every single data-center GPU it can make, and its pricing power right now is extreme.
Even with demand as high as it is, a $1 trillion valuation for Nvidia requires some mental gymnastics last seen during the dot-com bubble. Based on the average analyst estimate for the current fiscal year, Nvidia stock trades for about 26 times forward sales.
Source Fool.com
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