Nvidia’s Market Position and Growth Prospects
Nvidia (NASDAQ: NVDA) stands as the world’s largest company by market capitalization, with over 1,000% gains since the beginning of 2023. The company’s significant role in AI training and processing has led to an anticipated rise in global data center capital expenditures, projected to reach $1 trillion by 2028.
In fiscal 2025, Nvidia’s data center division generated $115 billion in revenue, capturing nearly a third of the estimated $400 billion data center capex in 2024. The recent announcement by Alphabet to raise capex guidance from $75 billion to $85 billion in 2025 further underscores the expanding demand for Nvidia’s GPUs.
Additionally, Nvidia is reapplying for export licenses to China, which could recover an estimated $8 billion in potential sales previously lost due to U.S. government restrictions. CEO Jensen Huang’s leadership has been pivotal, positioning Nvidia well in the market, making it an ongoing candidate for investment despite its high valuation.
