This Nvidia Rival Could Become the Next Hot AI Play, and It Is Way Cheaper
Investors have been buying shares of Nvidia (NASDAQ: NVDA) hand over fist in 2023 thanks to its artificial intelligence (AI)-fueled growth. This is not surprising, since the chipmaker's revenue and earnings are getting a serious boost from the booming demand for graphics processing units (GPUs), which are needed for training AI models and for inferencing.
From reporting a 13% year-over-year decline in revenue to $7.2 billion in the previous quarter, Nvidia is now on track to deliver $11 billion in revenue in the current quarter. That would translate into a 64% jump over the prior year. The biggest reason why Nvidia is anticipating such outstanding growth despite the woeful situation in the personal computer (PC) market -- which has wrecked the company's gaming business -- is because of its dominant position in the data center GPU market.
Nvidia reportedly controls 95% of the machine learning GPU market, according to New Street Research. As these graphics cards reportedly start from $10,000 and could go up to more than $40,000, it is not surprising to see why the company's growth is about to accelerate big time. Its revenue is expected to increase close to 60% in fiscal year 2024, while earnings are estimated to jump 133%.
Source Fool.com
