Prediction: 1 Artificial Intelligence (AI) Stock That Will Be Worth More Than Nvidia 5 Years From Now
Demand for chips that power artificial intelligence (AI) could eventually slow.
The past few years have marked a paradigm shift in technology thanks to recent advances in artificial intelligence (AI). A quick look at the list of the world's most valuable companies by market cap helps to illustrate the shift. Eight of the top 10 are among the world's most recognized purveyors of technology -- and each of them has deep ties to AI.
Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs) supply the computational horsepower that makes generative AI possible and has ridden the accelerating wave of adoption to new heights. With a market cap of $3.4 trillion, its value is exceeded only by Apple at nearly $3.7 trillion (as of this writing).
The future looks bright for Nvidia, as the company's largest customers have committed to invest a combined $315 billion in capital expenditures in 2025. The vast majority of that spending is allocated to the servers and data centers needed to support AI. As the leading provider of data center GPUs, Nvidia will capture a large portion of that spending.
