Could Nvidia's Projected 9% Annual Returns Through 2030 Be the Smartest Risk-Adjusted Play in Tech?
Forget chasing the next artificial intelligence (AI) unicorn. While venture capitalists funnel billions into speculative start-ups, Nvidia (NASDAQ: NVDA) continues to dominate the infrastructure powering the entire industry. A projected 9% annual return may not sound thrilling, but it could be the smartest risk-adjusted investment in tech this decade.According to Coatue Management, an American technology-focused investment firm, Nvidia's market cap could grow from $3.5 trillion today to $5.6 trillion by 2030, implying a 9.6% compound annual growth rate from current levels. That's a far cry from its recent hypergrowth, but it reflects a business that's maturing into its role as the backbone of the AI economy.Image source: Getty Images.Continue reading
Forget chasing the next artificial intelligence (AI) unicorn. While venture capitalists funnel billions into speculative start-ups, Nvidia (NASDAQ: NVDA) continues to dominate the infrastructure powering the entire industry. A projected 9% annual return may not sound thrilling, but it could be the smartest risk-adjusted investment in tech this decade.
According to Coatue Management, an American technology-focused investment firm, Nvidia's market cap could grow from $3.5 trillion today to $5.6 trillion by 2030, implying a 9.6% compound annual growth rate from current levels. That's a far cry from its recent hypergrowth, but it reflects a business that's maturing into its role as the backbone of the AI economy.
Image source: Getty Images.
