Nvidia’s Dominance in AI Computing
Nvidia (NASDAQ: NVDA) has become the world’s largest company, significantly outpacing Microsoft (NASDAQ: MSFT). Key projections suggest that Nvidia’s market cap could reach nearly $7 trillion by 2028, up from its current valuation of $4.2 trillion, driven by the anticipated growth in data center capital expenditures from an estimated $400 billion in 2024 to $1 trillion by 2028.
Market Share and Future Projections
Nvidia dominates the GPU market, holding around 90% share in the data center segment, and generated $115 billion from this sector in fiscal year 2025. Assuming it retains its market share, Nvidia’s data center revenue could hit $288 billion by 2028, contributing significantly to total projected revenue of $311 billion that year. The company’s profit margin is expected to remain at approximately 55%, potentially resulting in $171 billion in profits.
Export License and Global Market
Nvidia’s H20 GPUs have been successful in China, although recent export restrictions apply. However, the company plans to reapply for a new export license, supported by U.S. government guarantees, allowing it to compete in major AI markets. Continued demand for AI and the ability to maintain market share are critical for Nvidia’s sustained growth.
