![]() According to GMI Research, the global data center market will grow by 12% a year through 2028, which allows for solid baseline growth in a scenario where NVIDIA does not take any market share from its competitors. Here, NVIDIA competes with AMD ( AMD) and Intel ( INTC) primarily. Where will that growth come from? NVIDIA benefits from several macro trends that continue to grow its addressable market. In fact, I do believe that even a 10% or 15% annual revenue growth rate could lead to compelling total returns for NVIDIA's shareholders when they hold for a long-enough time frame. But revenue growth of 30%, 50%, or even more per year is not needed for NVIDIA to be a good long-term investment. Growth will likely slow down on a relative basis, but that is to be expected from every company, as the law of large numbers dictates that maintaining extraordinary relative growth rates becomes impossible at some point. NVIDIA has experienced massive business growth in the last couple of years, and that should be the case in the future, too. ![]() NVIDIA's Long-Term Growth Will Likely Continue ![]() NVIDIA faces some short-term headwinds such as the crypto winter but should be a profitable investment at the current valuation for those that have a multi-year investment horizon. Fear about its future has gripped the market, but NVIDIA's long-term outlook is compelling since the long-term growth drivers remain in place. Shares are now trading at a discount compared to where they traded historically, for the first time in many years. NVIDIA Corporation ( NASDAQ: NVDA) has seen its shares pull back massively in recent months.
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