Nvidia: The Next Member of the $3 Trillion Club
Nvidia: The Growth Stock Set to Join Microsoft in the $3 Trillion Club
A (not so) secret weapon
Nvidia has long been known for creating the chips that generate lifelike images in video games. This is the result of its pioneering work in parallel processing, or the ability of its GPUs to process a multitude of mathematical calculations simultaneously by breaking the job up into smaller pieces and running them concurrently.
A track record of impressive growth
Over the past decade, Nvidia's revenue has grown by 1,900% (as of this writing), while its net income has surged 9,500%. In the company's fiscal 2024 (ended Jan. 28), revenue grew 126% year over year to $60.9 billion, while fiscal discipline drove diluted earnings per share (EPS) up 586% to $11.93.
Multiple growth drivers
While much of the focus is on AI, there are a number of other opportunities that could drive Nvidia higher. Chief among those is the gaming market, control of 80% of the discrete desktop GPU market, and data center market growth.
Considering Nvidia's multiple avenues for growth and the accelerating adoption of AI, it seems it's only a matter of time to attain a $3 trillion market cap.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.