Analysts forecast: NVIDIA could become the most expensive company in the world
A few years ago, no one could have imagined that artificial intelligence (AI) would become so important for the computing industry. However, today AI is already taking over various fields of activity and replacing people in many professions. Designers, copywriters, editors, and other professions are under threat of reduction. Against this backdrop, NVIDIA continues to hold its positions and dominate the industry. Analysts from Evercore ISI believe that in a few years NVIDIA could become the most valuable company in the world. Other American banks, including Morgan Stanley and B of A Securities, also share optimistic views about Nvidia’s future prospects.
NVIDIA shares have grown by approximately 194% this year. In just the past month, the company’s market capitalization has grown by 37% and as of June 21, 2023, exceeds $1 trillion. This growth is primarily due to artificial intelligence, which is becoming increasingly in demand in many fields of activity. Analysts from the largest financial institutions agree that NVIDIA is the leader in computing resources for AI technologies and, therefore, will be the main beneficiary in the current evolution of the industry.
Nvidia is one of the leading companies in graphics processors and computing technologies. Most scientific calculations and analytical applications today require enormous computing power. This is because data can have several dimensions, and performing analysis on simple computers becomes very difficult or impossible. This leads to the creation of supercomputing systems that cost incredible amounts of money.
Nvidia has become a leader in artificial intelligence because its technologies allow data to be processed on graphics processors, thereby reducing the cost of creating computing systems. This makes artificial intelligence accessible to a wide audience, including small and medium-sized companies that previously did not have access to such resources. The company develops software that allows for the recognition of complex images, such as faces and speech. These technologies are increasingly being used in medicine, robotics, autonomous vehicles, and other areas that require high performance and fast data processing.
In conclusion, Nvidia is becoming a leader in the artificial intelligence market thanks to the development of new technologies that allow data to be processed on graphics processors. This makes artificial intelligence accessible to a wide audience, including small and medium-sized companies, and enables the efficient use of computing power to solve complex tasks.
Experts from Jefferies and Bernstein have also expressed optimistic views about NVIDIA’s future, naming the company one of the best investment options in the developing AI industry. Additionally, Evercore ISI raised its target price for NVIDIA shares from $500 to $550, while Morgan Stanley and B of A Securities raised theirs from $450 to $500.
Meanwhile, NVIDIA continues to develop AI technologies and is becoming increasingly popular across different industries. As reported by The Guardian, the major German newspaper Bild plans to lay off hundreds of employees, as their work can be replaced by artificial intelligence. Automation will help the company cut costs by €100 million. The publication plans to reduce its staff of editors, proofreaders, photo editors, and deputy editors.
More and more companies are beginning to use AI to optimize work, automate many processes, and reduce costs. And this fact is having a positive impact on NVIDIA’s shares. Demand for computing power for artificial intelligence will only continue to grow with each passing year. Thus, analysts’ forecasts suggest that NVIDIA may become the world’s most expensive company in the near future thanks to its superiority in developing AI technologies. The use of AI in various fields creates additional opportunities for NVIDIA, allowing the company to increase profits and attract even more investors. NVIDIA shares remain one of the best investment options in the developing AI industry.