Nvidia's Growth Potential in the AI Market
Why it isn't right to call Nvidia, and AI, a bubble
A stock market bubble is a "significant run-up in stock prices without a corresponding increase in the value of the businesses they represent." In a bubble, the valuation of a company is based on speculation instead of the actual fundamentals.
However, if you take a closer look at how AI is driving productivity gains across multiple industries, it will become easier to understand that the adoption of this technology should ideally continue gaining momentum.
- AI is boosting returns in ad campaigns by 32%
- AI is increasing productivity in customer service by 14%
Nvidia's role in driving productivity gains
Training large language models (LLMs) using Nvidia's GPUs is essential for deploying AI across industries. With Nvidia having monopoly-like dominance in the AI chip market, its revenue and earnings growth are supported by the high demand for its cutting-edge processors.
- Nvidia's H100 processor key in training AI models
- Customers eager for Blackwell architecture advancements
The U.S. government's financial support to TSMC for chip manufacturing indicates Nvidia's potential for enhancing its AI graphics cards in the future.
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.