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Nvidia (NASDAQ: NVDA) is positioned to dominate the AI investment trend, projecting global data center capital expenditures to reach $3 trillion to $4 trillion by 2030. The company captures approximately 50% of costs associated with gigawatt AI factories, which contributes to its significant revenue share. In 2023, AI hyperscalers are expected to collectively spend $600 billion on data centers.
Despite increasing competition, Nvidia anticipates capturing 20% of that projected capital expenditure, potentially leading to $600 billion in revenue. If it maintains its current profit margins and achieves a price-to-earnings valuation of 30, Nvidia’s market capitalization could reach $9 trillion, with stock prices predicted to exceed $370 by 2030.
Nvidia’s stock, presently priced at $178, has already surged over 800% from the start of 2023 and is up another 33% in 2024, indicating strong growth prospects in the ongoing AI computing power buildout cycle.
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