Where Will Nvidia's Soaring Stock Be in 3 Years?
With shares up a whopping 244% year to date, Nvidia (NASDAQ: NVDA) stock has been a slam dunk for its near-term investors as the artificial intelligence (AI) boom sends demand for its data center chips through the roof. But what will the future bring -- especially as more companies join this red-hot industry? Let's dig deeper to find out how this technology giant may perform over the coming three years.
If generative AI can be likened to the California Gold Rush, Nvidia is selling the picks and shovels via its advanced graphics processing units (GPUs). This hardware is crucial for training and running generative AI applications and giving data centers the computing power they need to offer AI-related solutions to their enterprise clients. The surging demand for these products shows no signs of stopping.
According to TechCrunch, Nvidia's third-quarter revenue jumped 206% year over year to $18.1 billion based on sales of some of its highest-margin products, like the H100 data center chip, which can cost over $30,000. And with consumer demand shifting from Nvidia's cheaper consumer GPUs to its most expensive offerings, the chipmaker could quickly become one of the world's most profitable companies. In the third quarter, its net income margin rose from 46% to 51% while profits jumped by 588% to $10 billion.
Source Fool.com
