Nvidia (NASDAQ: NVDA) is projected to lead the AI market in 2025, capitalizing on record capital expenditures of $400 billion in data centers by 2024, with forecasts suggesting it could reach $1 trillion by 2028. The company, known for its graphics processing units (GPUs), currently holds around 90% market share in data center GPUs and generated $115 billion in revenue during fiscal 2025.
The CEO of Nvidia, Jensen Huang, highlighted the robust demand for AI computing, stating that the spending on data centers is essential for future growth. Even amid investor fatigue regarding AI, Nvidia’s price-to-earnings ratio of 36 aligns with industry peers like Microsoft and Amazon, while the company is expected to grow faster, reinforcing its position as a leading investment choice.
