2024-07-08 08:00:00 ET
Summary
- Nvidia's AI GPU sales continue to surge, with an estimated 98% market share.
- The AI chip market is forecast to soar to $400+ billion in 2027, but the larger technology companies have already ramped up capex to levels not particularly conducive to higher spending.
- The stock is likely to continue rallying in the next 6 to 12 months due to momentum, but the ultimate risk is normalized margins slashing EPS targets.
Nvidia Corporation ( NVDA ) remains a runaway train with AI GPU sales continuing to surge beyond all original expectations. The biggest question is the ultimate size of the AI chip market and the market share of Nvidia, which currently has an estimated 95% of the market as peers finally ramp up sales. My investment thesis remains Neutral on the stock, though momentum appears to build for another big run higher....
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For further details see:
Nvidia: Reversion To The Mean Risk