As for Nvidia, the growth is even faster, far surpassing the above giants.
Are there bubbles or not?
If Apple and Microsoft grow thanks to traditional technology products, Nvidia is making a breakthrough thanks to the wave of artificial intelligence (AI).
Nvidia was founded in 1991. For the first few decades, it was primarily a hardware company selling chips to gamers to run 3D titles. But from the end of 2022, Nvidia surged thanks to the AI fever after OpenAI launched ChatGPT. The AI fever spread globally, the whole world knew that OpenAI developed generative AI technology based on Nvidia graphics chips.
With the current growth rate, many forecasts say that Nvidia will become the first enterprise in the world to reach the threshold of 10,000 billion USD. A few years ago, this was unimaginable, but now, many organizations and experts around the world believe in this possibility.
That also means that Nvidia shares will continue to increase and increase strongly in the coming years.
The question is whether Nvidia will continue to increase in price or has fallen into a bubble, like Cisco Systems stock during the Dot Com bubble in 2000?
Sharing on his personal page, expert Adam Khoo said that this possibility is unlikely, Nvidia shares may not have peaked yet. According to a famous Singaporean expert, Cisco Systems shares increased 4.7 times in the period 1998-2000. At that time, this stock had a price-to-earnings ratio (P/E) of 200 times.
For now, Nvidia’s P/E is much lower. Nvidia’s future P/E as of early 2025 is only a few dozen times.
What is interesting is that graphics processing units (GPUs) containing Nvidia chips (used for supercomputers that build AI platforms) have an almost absolute monopoly, up to 80% of the market share worldwide. The products of the American technology giant are currently not enough to supply the market.
According to experts, Nvidia is truly a huge money-making machine at this time. The company’s first-quarter revenue increased nearly 3.7 times over the same period last year, while profit increased 8.7 times, to 12.3 billion USD.
Nvidia’s prospects are considered very strong thanks to the potential of chips for AI.
Nvidia CEO Jensen Huang said that the AI factory era is very close. It is an advanced data center for developers to build high-performance AI applications for various industries.
Nvidia is considered a business at the center of the world’s AI revolution. The enterprise has established a hardware and software ecosystem that forms the foundation for computers and servers; Other new products are also being deployed by the world’s largest data center operators, including Amazon.com, Microsoft, Google.