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Nvidia (NASDAQ: NVDA) is projected to generate $231 billion in data center compute revenue by 2026, assuming it maintains 70% control of the AI accelerator market. This comes as part of a broader market growth where spending on AI accelerators is expected to rise from $267 billion in 2025 to nearly $330 billion in 2026, according to Gartner.
Despite early challenges in 2025 that resulted in a year-to-date stock increase of 32%, Nvidia’s recovery is attributed to its dominance in the AI chip market, holding an estimated 80% of the sector. Nvidia sold $102 billion worth of AI compute chips in 2024 and forecasts substantial growth across its other segments, which generated $28 billion in revenue, reflecting a 29% increase from the previous year.
The company’s projections suggest overall revenue could exceed $270 billion in fiscal 2026, with potential for significant stock price appreciation, while trading at a lower multiple compared to its current valuation.
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