Nvidia, a company which is headquartered in California has the potential to become a $10 trillion company by 2030, according to one Wall Street Journal. The company’s fortunes have moved up since the Artificial Intelligence (AI) boom across the world. For instance, its share prices increased by more than 800% since Chat GPT made its debut in 2022. Recently, the company has also achieved a $3 trillion market capitalization and surpassed Apple to become the second largest public company. Its recent achievements have made the shareholders curious about the main business of the company and its potential.

Demand for shares of the company:

On last Friday, the company executed a 10 for 1 stock split and reduced the share prices making it more reasonable. The wall street analysts remain overall bullish about the company’s performance. Among the analyst, 90% rated that the stock can be purchased whereas 10% suggested that the stock should not be sold at present.
Beth Kendig who is a lead tech analyst at the I/O Fund recently told the CNBC that the company could become a $10 trillion company by 2030 due to its superior hardware and its CUDA software which is in high demand. The share prices of the company are moving up and the company’s fortunes are also increasing due its expertise, services offered and other reasons.

Gold Standards of AI Infrastructure:

The company is leading provider of Graphic Processing Units (GPU), chips used to speed up computational programs pertaining to various AI software solutions. In 2023, the company accounted for 93% of all data center GPU sales, according to IoT Analytics. The GPU of this company is considered to be gold standards of AI infrastructure. The market share of this company has been estimated to be 80% whereas others estimate it to be 95%.

CUDA which is a programming software of the company is being used in more than 250 software libraries across the world.

Strong demand for AI Products:

In the first quarter of Fiscal 2025, the company’s revenue rose by 262% to $26 billion. This was due to strong demand for GPU products and various AI software solutions. CFO of the company Colette Kress even said that the demand for the company’s products may soon surpass the supply. What can stop the company from its objectives?
Various international bodies and national governments are seeking to regulate AI and its applications. The company’s fortunes are linked to the demand for these AI products. Hence, they will be impacted by governmental regulations and policies.


What is a 10 for 1 stock split?
This is a term used in the stock market. Let us assume the price of 1 share is $10 dollars. Now, the value of this share is split in a prescribed ratio. This is done to boost the liquidity for the company and reducing its face value. The market cap remains the same.

Where is the headquarters of Nvidia?
The company has its headquarters in California. It has been incorporated in the state of California but was reincorporated in the state of Delaware. Tesla also has been incorporated in Delaware and is now considering shifting to Texas.

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