NVIDIA Could Potentially Generate $300 Billion In Revenue From AI-Driven Sales By 2027
NVIDIA is at the forefront when it comes to capitalizing on the AI hype. The company recently hit an astonishing milestone of trillion dollar valuation; by the looks of it, things won't end here. Analysts have reported that NVIDIA could earn enormous revenue through AI-based sales in upcoming years.
Vijay Rakesh, an analyst from Mizuho Financial Group, has predicted a 20% increase in NVIDIA's stock target price, reaching $530. It is important to note that the previous target price was $400; hence this huge uplift is mainly due to the surge in demand for NVIDIA's AI products. Moreover, the analyst notes that NVIDIA will dominate the AI industry in upcoming years and that the company's revenue could reach $300 billion only from AI-orientated sales.
Even AMD is excited about this opportunity and mentioned that AI has 5-10 years of gas in it and will be a major portion of revenue for the tech industry in the following years.
NVIDIA is undoubtedly ahead of its competitors regarding its market share in the AI industry. The company expects to hold a 75% market share of AI server units by 2027. Here is what the analyst Vijay Rakesh adds to the discussion:
With demand for generative AI accelerating, we see significant opportunities for hardware suppliers powering the higher compute needs for large-language models, particularly AI powerhouse NVDA.
via Insider
NVIDIA's GPU business has skyrocketed to new heights after the company had fully betted on the AI hype. With generative AI models taking the tech industry by storm, NVIDIA is getting orders from all corners to get hands-on with its brand-new GPUs, including the A100 and the H100. The extent of the demand is so huge that the company is currently unable to fulfill the vast orders,
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