It’s not too big to say that today without primary artificial intelligence (AI) will not be industry Nvidia(NASDAQ: NVDA)A number of Chipmaker’s hardware was very important to the training and first language model (LLM), ChatGPT. And investors were wealthy wealthy in the previous three years with more than 360% shares (at the time of this writing).
But the performance of the past does not guarantee further results, and Niidia faces challenges and opportunities in the coming years. Let’s study how these factors can affect the performance of its shares.
NVIDIA AI hardware business is still prosperity. The income of the fourth quarter jumped by 78% to $ 39.3 billion, as it began its new Blackwell-based AI chips used to launch and train AI algorithms. However, while companies are still ready to spend big dollars for the latest and greatest proposals for NVIDIA, it is not clear how long this dynamics will last.
Generally, companies do not want to dominate one provider as it can make them vulnerable to lack or adverse pricing. And while Nvdia remains a preferred source for AI chips, companies work hard to diversify their supply networks.
February, ChatGPT Maker Openai funded home-order chip design Taiwanese semiconductor productionThis can lead to mass production in 2026. Custom chips are designed for special tasks, which allows them to operate with less unnecessary components (and possible lower costs) than one size of NVIDIA. If more companies decide to make this route, it can detect Nvdia’s business growth and margin pressure.
NVIDIA customers are the only one to take all their eggs from one basket. Temperatures are also worried about the possibility of ai general. Sale of the data center (which include high quality AI chips) represented 88% of the sale of 2024 ($ 115.2 billion). And the company must diversify in the coming years.
The company’s automobile and robotics Segment could play a role in this transition. Although these businesses have caused only $ 1.7 billion worth of sale in 2024, it is 55% impressive last year. Growth can accelerate so much, as more companies are investing in technology, such as full self-movies, McKinsey & Company Analysts can cost $ 300 billion worth $ 400 billion.
Image source: Getty Images.
Before the main AI, robots and self, they will probably praise the history of NVIDIA in the next three years, the investors should not forget about the original mission of the company. Before this one-time businesses represented only 8.7% of NVIDIA income in 2024, it could stimulate such technologies. High quality reality (AR) And the virtual reality (VR) that will require huge quantities of graphics and image.
While companies love Meta Platforms: It seems that they have supported this opportunity in the near future, the investors should not underestimate the younger, more technological savings. Wired Magazine:Meta’s VR platform, “Horizon Worlds”, “Children’s Taken”.
After all, these children will grow in adults, pushing this newborn technology by creating the main flow and the opportunity to sell more NVIDIA graphics cards. The company did not overlook this opportunity by investing in hardware and software solutions designed specifically for AR and VR.
NVIDIA remains in a very speculative and uncertain productive industry of the tray. And despite their attention, it may take years to robotics, self-development for new opportunities and virtual reality. While the evaluation of the stock remains reasonable Before price-earnings Multiple, investors of 26 P / E) should wait for the borders until additional information is available.
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RANDI UCK UCKBERG, Former Market Development Director and CEO of Facebook and Sister Mark Zukeberg is a member of Motley Fool’s board. Will be ebiefung does not have any of the specified shares. Motley Fool has positions and offers Meta Platforms, Nvidia and Taiwan semiconductor. Motley Fool has Discovery Policy:A number
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