NVIDIA Corp, the AI GPUs computer chips manufacturer could end up being worth 7 trillion USD in market capitalization in view of the current artificial intelligence, AI hype, according to Wolfteam Ltd.'s projections and estimates.
The demand for NVIDIA's AI computer and server chips seems insatiable. Artificial intelligence, AI calculations require ever increasing huge amounts of computer super power coupled with tremendous energy requirements. And NVIDIA seems up to the challenge to innovate, increase the number of transistors in the computer chips it produces to be in line with the huge and ever growing demand. Currently
In the last five quarters NVIDIA's has grown its revenue with 140 % year in year on average. This is a nascent, small, possibly changing the world technology startup type of growth. That is why NVIDIA sports such lofty Price/Earnings ratio of 54.47 and Price/Sales ratio of 30. Because NVIDA seems the only computer chips production company on the market, currently, able to innovate fast enough and produce the AI computer and server chips with the required super power, NVIDIA is able to charge hefty prices and thus achieve super high net profit margin of 53 % in the last five rolling quarter.
So NVDIA's profitability in tandem with its high revenue growth determines NVIDIA's high valuation multiples and stunning, world leading market capitalization of 3.35 trillion USDs.
NVIDIA, if it continues to innovate so fast and ride the current AI boom could even surpass 10 trillion USDs of market capitalization as long as the artificial intelligence, AI boom continues. If for some binary event, government intervention, whatever the AI booms suddenly stops NVIDIA's market capitalization could fall below 1 trillion USDs in a matter of months, in Wolfteam Ltd.'s view.
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