Key Points
Nvidia (NASDAQ: NVDA) has experienced a remarkable surge, with its stock rising approximately 1,000% since the start of 2023, contributing to its status as the company with the largest market capitalization in the world. Nvidia holds a dominant 90% market share in the graphics processing unit (GPU) market, which is increasingly driven by demand for AI training solutions.
Looking ahead, Nvidia’s revenue from its data center division is projected to grow significantly, with estimates suggesting that data center capital expenditures could rise from $400 billion in 2024 to $1 trillion by 2028. Nvidia currently generates around $115 billion in revenue from this division, positioning it for substantial future growth.
If Nvidia maintains its market share in the data center space, it could potentially generate nearly $300 billion in revenue from this sector alone, highlighting the significant upside potential for its stock.
