Is Nvidia Still a Buy After Its AI-Driven Rally?
18
2
BTCCSquare news:
Nvidia's stock has surged 1,230% over five years, fueled by its dominance in AI-accelerating GPUs. The company now commands a $4.41 trillion market cap as demand for its data center chips continues unabated.
Grand View Research projects the global AI market to grow at 31.5% annually through 2035. Nvidia maintains a 90% stranglehold on discrete GPUs, with industry leaders like OpenAI relying on its hardware. Gross margins have expanded to 75.5%, while net income grew at an 83% CAGR since 2020.
The bullish case hinges on Nvidia's first-mover advantage in AI infrastructure. However, valuation concerns persist after the parabolic rise, with competitors racing to develop alternative AI chips.
By:
