NVIDIA Could Make $300 Billion In Revenue Using AI, Reports Say

The well-known chipmaker NVIDIA is currently riding high on the tides of the artificial intelligence (AI) boom, and it appears that the trip has just begun. Analysts think there is still room for growth in the Santa Clara-based company’s stock price, which has more than doubled. Vijay Rakesh, an analyst at Mizuho, has revised his price estimate for the company to $530, representing a 20% increase over the current price. He believes this prediction to be conservative, indicating the possibility of even bigger profits, he said in an interview last week.

The surge in NVIDIA’s stock price is not without reason. The company’s stronghold in AI chips is expected to persist until at least 2027, providing a significant competitive advantage in the market. Rakesh predicts that NVIDIA could rake in approximately $300 billion in AI-specific revenue by 2027, capturing a dominant 75% share of the AI server units market. This staggering figure is ten times higher than his initial projection of $25 billion to $30 billion in AI revenues for this year.

The demand for generative AI is on the rise, creating substantial opportunities for hardware suppliers like NVIDIA. As large-language models and AI applications require higher compute capabilities, NVIDIA’s position as an AI powerhouse puts it in an advantageous position to meet these demands effectively.

This surge in NVIDIA’s growth is reinforced by the company’s first-quarter results, which beat Wall Street forecasts with $7.2 billion in revenue. While the exact portion attributed to AI-specific businesses was not disclosed, the robust performance fueled the company’s momentum and investor confidence.

The incredible performance of NVIDIA’s stock has not only enriched investors but also catapulted the wealth of its CEO, Jensen Huang. According to the Bloomberg Billionaires Index, Huang’s net worth has nearly doubled, making him the 32nd richest person in the world, with a staggering net worth of $40 billion. His significant ownership of 86.9 million NVIDIA shares further aligns his interests with the company’s growth.

Mizuho’s bullish outlook on NVIDIA is not unique. In June, Morgan Stanley declared NVIDIA as its “top pick,” emphasizing the increasing demand for its AI chips.

The demand for high-performance technology, like NVIDIA’s AI chips, is anticipated to soar as AI continues to permeate several industries. NVIDIA appears prepared to maintain its upward trajectory and continue to be a driving force in the AI revolution for years to come thanks to their dominant position in the market and the possibility of huge revenue growth.