Nvidia's (NVDA, Financial) CEO, Jensen Huang, has given a reason to reassure investors and keep their excitement for the AI giant going despite recent doubts over its long-term growth potential. Elaborating on this opportunity in the AI sector, Huang described in an interview in the latest podcast episode that there currently lie approximately $1 trillion worth of outdated computers in the world, and only $150 billion of that is targeted.
As the largest and dominant player within the AI chip market, with a marketplace share of eighty percent, Nvidia has grown massively past its core of gaming GPUs. The firm now reigns as the data center market's front-runner; it owes this predominance to its range of AI commodities and solutions, which accounted for 87% of total sales in the present quarter, at $26.3bn. This change has not only shifted recreated the revenue model of Nvidia but has also lifted its stock by over 170% this year, having risen by 2700% in the last five years alone.
Although some investors have been scared away by the stock's rapid growth, they need to look at Huang's words, who sees prospects for continued growth rates from other markets. Huang's insights into the enormous but scarcely explored market of refreshing old computer systems point out that Nvidia might still have great potential for increasing its AI impact.
Its combination for both game players and investors has led directly to investors and analysts wondering if Nvidia can properly seize this opportunity and continue on its meteoric rise in the fast-moving world of tech. With another quarter of double-digit revenue growth expected, the tech community will look to the company and its ongoing advancements in and monopolization of the AI field.
