Artificial Intelligence (AI) Is Moving Beyond Data Centers. 1 Semiconductor Stock to Buy Hand Over Fist Before It Skyrockets Thanks to a Massive Opportunity (Hint: It’s Not Nvidia) The artificial intelligence (AI) trade has thus far been largely restricted to data center…
frastructure. Companies selling AI hardware, such as chips, servers, and networking components, have witnessed a remarkable increase in revenue and earnings in recent years
Nvidia (NASDAQ: NVDA) is one of the biggest examples of how the booming demand for AI data center components has transformed a company’s fortunes. Its revenue in fiscal 2023 (which ended in January 2023) was $27 billion. That was just before Nvidia started benefiting from the AI-fueled demand for its graphics processing units (GPUs).
The introduction of ChatGPT in November 2022 gave Nvidia a massive boost, as customers made a beeline for its GPUs to train and deploy AI models. It is now the largest company in the world and is expected to clock a whopping $392 billion revenue in fiscal 2027. That points toward a jump of over 14x in just four years.