Nvidia grew more than 125% during 2021 alone!
The chip maker is currently the ninth most valuable company in the world. In November 2021, while
the company’s stock reached an all-time high with a share price of $347 and a market cap that exceeded $800 billion.
Nvidia’s business has grown more than five fold within 5 year cycle, with its chips now being snapped up for everything from game consoles to data centers to self-driving cars.
Nvidia told analysts on their conference that now they target an addressable market of $1 trillion for its growing line of chips and related software.
*Nvidia Tweet on latest release
Download our latest Game Ready Driver for the best Shadow Warrior 3 PC experience – Available now with NVIDIA DLSS + Reflex ⚡️
— NVIDIA GeForce (@NVIDIAGeForce) March 23, 2022
Tech companies routinely broadcast lofty views of their potential but,
Nvidia has particularly good reasons to aim high, but Nvidia’s market capitalization of about $655 billion is well above that of any other chip company.
- It is also about 12% above Meta Platforms, which has more than four times its annual revenue.
This is a stock that more than doubled in value in each of the last two years, gaining 77% the year before that.
Fortunately, many things are going Nvidia’s way,
As tech giants such as Amazon, Microsoft and Google continue to pour billions into their networks to satisfy growing demand for their cloud computing services, while Facebook’s parent is planning a 66% jump in capital spending this year to start building on its founder’s metaverse dreams.
Market-research firm Dell’Oro Group projects total data center capital expenditures to rise double digits this year,
elevating Nvidia’s data center segment revenue growth by 52%
But Nvidia will have to go beyond its two core markets of videogaming and data centers to maintain its position at the top of the chip kingdom.
Thus, sales are expected to jump more than 30% annually over the next two years topping, $1 billion for the fiscal year of 2024,
according to FactSet.
*The company ultimately sees a $300 billion market licensing its software to businesses building up their own AI capabilities and for its “Omniverse” technology—Nvidia’s preferred term for the metaverse
Source: Bloomberg/WSJ Photo; Nvidia