Latest news with #GB200
Yahoo
2 days ago
- Business
- Yahoo
Prediction: This Artificial Intelligence (AI) Company Will Be Worth Over $5 Trillion in 10 Years
Enterprises are rapidly adopting Nvidia's Blackwell GPUs, which offer better price performance compared to its previous Hopper family. The company's popular CUDA software ecosystem provides it with a significant competitive advantage. Planned purchases by big customers like the Stargate project and Saudi Arabia's new AI company, HUMAIN, will strengthen Nvidia's position in the global AI landscape. 10 stocks we like better than Nvidia › Shares of Nvidia (NASDAQ: NVDA) have been impacted by several factors, including increasing macroeconomic uncertainty, geopolitical tensions, ongoing tariff wars, export controls, and rising competition from Chinese companies in the past few months. However, the recent earnings performance -- including its recent impressive result in the fiscal first quarter of 2026 -- demonstrates why investors should not let the short-term noise distract them from the company's long-term growth prospects. Nvidia's first quarter fiscal 2026 earnings performance (ending April 27) validates its position as the clear leader in the artificial intelligence (AI) -powered hardware, software, and infrastructure services market. Revenue soared 69% year-over-year to $44.1 billion, while data center revenue surged 73% year-over-year to $39.1 billion in the first quarter. These tailwinds can propel Nvidia's market value to over $5 trillion in the next decade. Nvidia's dominance in the AI chip market, where it still controls a more than 80% share, should remain unchallenged at least for the next few years. The company's latest Grace Blackwell 200 (GB200) graphics processing units (GPUs) enable organizations to run computationally heavy reasoning AI models with 25 times higher performance and at a twentieth of the cost of Hopper H100 chips. The Blackwell ramp-up has been the fastest product launch in Nvidia's history and accounted for nearly 70% of data center compute revenues in the recent quarter. Major hyperscalers are already deploying nearly 72,000 Blackwell GPUs weekly across their data centers and are planning to further ramp output in this quarter. Furthermore, Nvidia is sampling GB300 systems at major cloud service providers and expects production shipments to commence by the end of the second quarter. While these systems have the same architecture, physical footprint, and mechanical and electrical specifications as GB200, they offer 50% more high-bandwidth memory capacity and a 50% increase in inference computing performance. Hence, cloud service providers can transition from GB200 to GB300 systems while benefiting from higher performance Nvidia's software ecosystem has also become a strong moat, ensuring that customers will find it prohibitively costly to switch to competitors' chips. The company's comprehensive CUDA parallel programming platform is currently used by 5.9 million developers to accelerate GPUs for various general-purpose applications effectively. CUDA is currently used to accelerate all AI models and over 4,400 applications. Subsequently, CUDA helps prevent significant infrastructure investments from becoming obsolete in an exceptionally fast-evolving market. Additionally, the company launched its TensorRT software package for inference (real-time deployment of trained AI models) optimization and the TensorRT-LLM software library to ensure the fast and efficient running of large language models. Nvidia partnered with Humain, a newly launched AI company owned by Saudi Arabia's Public Investment Fund, to build AI factories with 18,000 of its latest GB300 Blackwell chips in the first deployment phase. Nvidia is also playing a key role in the Stargate Project, through which OpenAI, SoftBank, and Oracle have said they plan to invest $500 billion into U.S.-based AI infrastructure over the next four years. These strategic alliances could be significant growth catalysts for Nvidia in the long run. In its fiscal 2025, which ended Jan. 26, the chipmaker's revenues grew by 114% to $130.5 billion. While analysts are projecting lower revenue growth rates for future years, the consensus expectation is still for the company to grow quickly. Nvidia's revenues are forecast to increase by 52.8% and 23.9% in its fiscal 2026 and fiscal 2027, respectively. And the company's already off to a good start by recording 69% revenue growth in Q1 of fiscal 2026. In that context, it is reasonable to expect Nvidia to grow at a compound annual rate of nearly 20% over the next decade. If it does, it would wind up with about $808 billion in revenues in its fiscal 2035. Nvidia reported an exceptionally high net income margin of 55.8% in its fiscal 2025. The company has been able to steadily expand its margins in the past couple of years, largely due to its dominance in the AI market. Even if we assume that it will have to accept some margin contraction due to increasing competition and scale, it is reasonable to expect it to produce a net income margin of nearly 27.9% -- its 10-year median margin -- in fiscal 2035. With a top line of $808 billion, that would give it a net income of around $225 billion that year. Nvidia is trading at around 32.6 times forward earnings. Analysts have projected 5-year forward P/E multiple of 23.5x for Nvidia. Assuming this valuation multiple for the next 10 years , the company can reach a market value of $5.29 trillion by 2035. Hence, the company is well positioned to cross the $5 trillion market capitalization, even under conservative expectations. There are reasons to suspect its market value could grow even higher, too -- consider Nvidia's upcoming AI initiatives, such as Sovereign AI, agentic AI, and physical AI. Nvidia is also benefiting from the increasing demand for high-performance chips in gaming and AI PCs. Gaming revenue rose 42% year-over-year to $3.8 billion in the first quarter, driven by strong adoption of Blackwell architecture systems from gamers, creators, and AI enthusiasts. Enterprise AI is also becoming a significant growth catalyst, with Nvidia bringing AI-powered storage, computing, and networking capabilities directly to corporate environments. The company's RTX Pro, DGX Spark and DGX Station enterprise AI systems are targeting the $500 billion market opportunity. Nvidia's Omniverse and robotics platforms are also powering factory automation and humanoid robotic systems. With all that in mind, long-term investors should consider picking up at least a small stake in Nvidia to profit from the AI wave over the next decade. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy. Prediction: This Artificial Intelligence (AI) Company Will Be Worth Over $5 Trillion in 10 Years was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
4 days ago
- Business
- Yahoo
Trump Backs $500B Stargate Project, Transforming Abilene Into AI Epicenter
Abilene is quietly transforming from a quiet West Texas town into a potential global epicenter for artificial intelligence, thanks to the ambitious Stargate Project and President Donald Trump's backing. Stargate, a $500 billion plan led by tech heavyweights like OpenAI, Oracle, and SoftBank, hopes to redefine the future of AI while reshaping Texas' economic landscape. Following a White House meeting earlier this year, word surfaced that construction had already begun in remote parts of West Texas. Now, Trump has announced the monumental project alongside some of the most influential names in the AI industry. 'This will be the most important project of this era,' said Sam Altman, CEO of OpenAI, during a 2025 White House visit. The main goal of the massive endeavor is allegedly to boost America's leadership in AI technology, and Abilene is already anticipating the benefits of being chosen as the headquarters for Stargate. This undertaking could bring tremendous economic opportunities—and huge pressure. The Stargate Project's data center is already under construction on a nearly 900-acre site near the city. Once completed, the facility is expected to house almost 4 million square feet of 'data center space' powered by around 1.2 gigawatts of electricity, per BusinessInsider, making it one of the largest AI-focused data centers in the world, if not the largest to date. To support the huge computing demands, Oracle plans to invest around $40 billion in acquiring 400,000 of Nvidia's latest GB200 chips – some of the most advanced technology in the modern computing era. These chips will likely be installed/used at the Abilene facility to provide the necessary power for 'advanced AI applications,' applications that could change our perception of technology as we know it. Local leaders of the small Texas city have already been vocally optimistic about all the economic benefits the Stargate Project will bring to West Texas. Stargate is expected to create numerous job opportunities and stimulate the local economy. Local media outlets, such as BigCountryHomepage, have already posted several high-paying job opportunities. According to the Development Corporation of Abilene, the City Council approved a tax abatement agreement that could grant Crusoe, the data center's developer, an 85% property tax break based on a minimum $2.4 billion investment in the area. $2.4 billion could do a lot for Abilene, a city with a listed population of around 130,000 by the 2024 census. To meet the other huge energy requirements the Stargate hub needs, plans are underway to construct an on-site natural gas plant capable of producing up to 360.5 megawatts of power, per BusinessInsider. The new facilities could provide both primary and backup power exclusively for the data center's needs, hopefully locking in a reliable energy supply for one of the biggest demands in Texas' history. 'AI holds incredible promise for all of us,' said Oracle founder Larry Ellison in January after a speech from Trump on Stargate. 'We've been working with OpenAI for awhile. The data centers are actually under construction, the first of them are under construction in Texas. Each building is half a million square feet. There are 10 buildings currently being built, but that will expand to 20 and other locations beyond the Abilene location, which is our first location,' Ellison added, per The Abilene Reporter News. There is no word yet on how Stargate will affect the state's energy grid, which has had Texans begging for more stability and consistency after recent storms, as The Dallas Express has consistently covered in the past.
Yahoo
4 days ago
- Business
- Yahoo
Trump Backs $500B Stargate Project, Transforming Abilene Into AI Epicenter
Abilene is quietly transforming from a quiet West Texas town into a potential global epicenter for artificial intelligence, thanks to the ambitious Stargate Project and President Donald Trump's backing. Stargate, a $500 billion plan led by tech heavyweights like OpenAI, Oracle, and SoftBank, hopes to redefine the future of AI while reshaping Texas' economic landscape. Following a White House meeting earlier this year, word surfaced that construction had already begun in remote parts of West Texas. Now, Trump has announced the monumental project alongside some of the most influential names in the AI industry. 'This will be the most important project of this era,' said Sam Altman, CEO of OpenAI, during a 2025 White House visit. The main goal of the massive endeavor is allegedly to boost America's leadership in AI technology, and Abilene is already anticipating the benefits of being chosen as the headquarters for Stargate. This undertaking could bring tremendous economic opportunities—and huge pressure. The Stargate Project's data center is already under construction on a nearly 900-acre site near the city. Once completed, the facility is expected to house almost 4 million square feet of 'data center space' powered by around 1.2 gigawatts of electricity, per BusinessInsider, making it one of the largest AI-focused data centers in the world, if not the largest to date. To support the huge computing demands, Oracle plans to invest around $40 billion in acquiring 400,000 of Nvidia's latest GB200 chips – some of the most advanced technology in the modern computing era. These chips will likely be installed/used at the Abilene facility to provide the necessary power for 'advanced AI applications,' applications that could change our perception of technology as we know it. Local leaders of the small Texas city have already been vocally optimistic about all the economic benefits the Stargate Project will bring to West Texas. Stargate is expected to create numerous job opportunities and stimulate the local economy. Local media outlets, such as BigCountryHomepage, have already posted several high-paying job opportunities. According to the Development Corporation of Abilene, the City Council approved a tax abatement agreement that could grant Crusoe, the data center's developer, an 85% property tax break based on a minimum $2.4 billion investment in the area. $2.4 billion could do a lot for Abilene, a city with a listed population of around 130,000 by the 2024 census. To meet the other huge energy requirements the Stargate hub needs, plans are underway to construct an on-site natural gas plant capable of producing up to 360.5 megawatts of power, per BusinessInsider. The new facilities could provide both primary and backup power exclusively for the data center's needs, hopefully locking in a reliable energy supply for one of the biggest demands in Texas' history. 'AI holds incredible promise for all of us,' said Oracle founder Larry Ellison in January after a speech from Trump on Stargate. 'We've been working with OpenAI for awhile. The data centers are actually under construction, the first of them are under construction in Texas. Each building is half a million square feet. There are 10 buildings currently being built, but that will expand to 20 and other locations beyond the Abilene location, which is our first location,' Ellison added, per The Abilene Reporter News. There is no word yet on how Stargate will affect the state's energy grid, which has had Texans begging for more stability and consistency after recent storms, as The Dallas Express has consistently covered in the past.
Yahoo
5 days ago
- Business
- Yahoo
Citi Just Issued a 90-Day Bullish Outlook on Dell (DELL) – Here's Why
We recently published a list of . In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against other AI stocks that are on analyst's radar today. On May 27, Citi reaffirmed its Buy rating for Dell Technologies Inc. (NYSE:DELL) and set a price target of $128. Dell Technologies provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. The firm has introduced an optimistic 90-day short-term outlook for Dell shares. The optimism is because the firm sees an improving GB200 demand profile, 'showing a marked improvement.' Moreover, a leading Dell supplier has pointed out an improvement in GB200 NVL72 ramp beginning in May. This improvement is expected to contribute to a projected 50% year-over-year growth in Dell's artificial intelligence server revenues in 2025. A team of IT experts discussing the latest network security trends over a laptop screen. Overall, the firm views upside for Dell shares ahead of earnings this week, with improved demand for Nvidia's GB200 AI super chip, which Dell uses. 'We open a ST [short term] Upside View on DELL shares on improving GB200 demand profile, showing a marked improvement.' Overall, DELL ranks 9th on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
5 days ago
- Business
- Yahoo
Citi Just Issued a 90-Day Bullish Outlook on Dell (DELL) – Here's Why
We recently published a list of . In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against other AI stocks that are on analyst's radar today. On May 27, Citi reaffirmed its Buy rating for Dell Technologies Inc. (NYSE:DELL) and set a price target of $128. Dell Technologies provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. The firm has introduced an optimistic 90-day short-term outlook for Dell shares. The optimism is because the firm sees an improving GB200 demand profile, 'showing a marked improvement.' Moreover, a leading Dell supplier has pointed out an improvement in GB200 NVL72 ramp beginning in May. This improvement is expected to contribute to a projected 50% year-over-year growth in Dell's artificial intelligence server revenues in 2025. A team of IT experts discussing the latest network security trends over a laptop screen. Overall, the firm views upside for Dell shares ahead of earnings this week, with improved demand for Nvidia's GB200 AI super chip, which Dell uses. 'We open a ST [short term] Upside View on DELL shares on improving GB200 demand profile, showing a marked improvement.' Overall, DELL ranks 9th on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
