"Sales of the company's GPUs have exploded, as demand for the highest-performance and most powerful semiconductors continues to balloon. With nearly every company in every industry at least looking at ways that artificial intelligence can potentially improve their productivity, I think the robust demand trends we're seeing from consumers all the way through to corporations and governments will remain in place for a long time."
"After all, while chips continue to get more and more powerful, and there is a replacement time horizon with these chips (much in a similar fashion as smartphones and other technologies), the question is whether customers will ultimately pony up for the latest and greatest next-generation chip or not. And with more lower-cost rival chips coming from companies like Alphabet ( NASDAQ:GOOG), there are real competitive threats to Nvidia worth thinking about."
Sales of Nvidia's GPUs have exploded, reflecting ballooning demand for the highest-performance and most powerful semiconductors. Nearly every company across industries is exploring ways that artificial intelligence can improve productivity, creating robust demand from consumers, corporations, and governments. Questions persist about whether growth will remain robust and whether spending will slow as chips reach replacement time horizons similar to smartphones, and whether customers will purchase next-generation chips. Lower-cost rival chips from companies like Alphabet introduce real competitive threats to Nvidia's market dominance. A bullish valuation projects Nvidia could reach $300 per share (over $7.4 trillion) in 2026 based on AI-driven GPU leadership.
Read at 24/7 Wall St.
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