CryptoCurrency
Where Will Artificial Intelligence (AI) Leader Nvidia Be in 5 Years?
Chip and data center specialist Nvidia (NASDAQ: NVDA) has emerged as the king of the artificial intelligence (AI) realm. Quarter after quarter, the company continues to defy expectations, set revenue and profit records, and provide investors with a laundry list of such good news that it’s hard to keep track of it all.
If you’ve held Nvidia stock at any point during the last two years, congratulations. You’ve probably made a lot of money.
But as I often express in my pieces, investors need to think long term. Can Nvidia’s rocket ship keep climbing higher?
Below, I’ll outline catalysts and risk factors facing Nvidia. Moreover, I’ll detail how I think these points can impact the stock and assess how Nvidia shares may hold up over the next five years.
The next couple of years look great, but…
One of Nvidia’s best-selling products at the moment is its H100 graphics processing unit (GPU). Meta Platforms CEO Mark Zuckerberg and Tesla CEO Elon Musk have both specifically referenced the importance of the H100 technology for their respective businesses’ generative AI development.
Yet, despite the unrelenting demand for the H100, Nvidia is already on the brink of a successor chipset. The company’s new Blackwell GPUs are set to launch later this year, and both Wall Street and Nvidia’s own management are forecasting billions of additional dollars in sales by the end of the year.
Furthermore, continued heavy spending on capital expenditures (capex) from the likes of Meta, Tesla, Microsoft, Amazon, and Alphabet should serve as a nice tailwind for Nvidia’s compute and networking business.
With all that in mind, Nvidia stock could be poised to see further gains over the next couple of years once Blackwell really hits its stride.
The longer-term picture is cloudy
One important detail to call out regarding more capex spending from big tech is that not all of this will be allocated toward Nvidia’s products. Rather, each of the “Magnificent Seven” members highlighted above is working on their own in-house custom chip designs. In other words, Nvidia’s own customers are looking to compete with the company and move away from a sweeping overreliance on its IT infrastructure.
Such a dynamic will likely be a headwind for Nvidia in terms of its pricing power. I suspect lower prices for Nvidia’s GPUs will begin eating away at its revenue growth and gross profit margins. As revenue growth begins to normalize and margins start to shrink, Nvidia’s profitability profile will tighten.
As a result, rising competition could be the catalyst that ultimately leads to a plateau across Nvidia’s entire business. For these reasons, I think the stock has a good chance of selling off in the long run.
The bottom line
I’d like to make one thing abundantly clear: Nvidia stock likely has a solid runway ahead. However, as I’ve expressed before, I think timing will become a more important factor when assessing whether or not to buy or sell Nvidia shares.
In other words, I do not think Nvidia stock will gain another 2,800% over the next five years. While the stock will go up at times, it’s highly unlikely that shares will soar upwards in a straight line and experience minimal sell-offs.
Candidly, I think these dynamics have been at the center of Nvidia’s selling activity from several high-profile billionaires lately.
Will Blackwell and whatever else Nvidia releases over the next five years be successful products? Probably. But will they be so successful that Nvidia will remain the king of the AI realm, with the rest of the tech world lucky just to get their hands on the company’s products? In my opinion, I don’t think that will be the case.
For these reasons, I think Nvidia’s valuation will normalize over the next five years, and the stock may very well underperform its peers and the technology sector at large. I think there are more compelling opportunities in the chip industry and AI space more broadly. I would think long and hard before doubling down on a position in Nvidia over the next several years.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 7, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Where Will Artificial Intelligence (AI) Leader Nvidia Be in 5 Years? was originally published by The Motley Fool
CryptoCurrency
Time to Hit Buy on These 2 Software Stocks, Says Daniel Ives
It’s no secret that tech stocks have been powering the market gains over the past few years, and software stocks were among the biggest drivers of this growth.
Multiple factors are propelling the software industry forward, such as the rapid advancement of AI technology, high demand for IT solutions, and the ongoing expansion of the global digital economy.
Wedbush tech expert Daniel Ives has been watching the tech industry, and his take on it points to continued strength supported by AI and cloud expansion.
“Solid enterprise spending, digital advertising rebound, and the AI Revolution will drive tech stocks higher into year-end in our view,” Ives opined. “We believe 70% of global workloads will be on the cloud by the end of 2025, up from less than 50% today.”
Keeping that in mind, Ives goes on to add that the time has come to hit buy on two software stocks. They may not be household names, but according to the TipRanks data, both stocks are Buy-rated – and Ives sees significantly more upside to each than the consensus on the Street. Let’s take a closer look.
Couchbase (BASE)
We’ll start with Couchbase, a modern database platform provider that offers users and developers everything they need to support a wide range of applications – from cloud, to edge, to AI. Couchbase bills itself as a one-stop-shop for data developers and architects, making its services available through its powerful database-as-a-service platform, Capella. Organizations using the service can quickly create applications and services that deliver premium customer experiences, giving top-end performance at affordable prices.
The Capella platform brings the popular as-a-service subscription model to the database industry. The company can support database services for a wide range of AI applications, including the latest gen-AI tech, as well as database search, mobile access, and analytic functions. Customers can also choose self-managed services through Couchbase’s servers, with on-premises management for both multicloud and community apps.
Couchbase’s database service has found success in a wide range of fields, including the gaming, healthcare, entertainment, retail, travel, and utility sectors. The company’s customer base includes such major names as Verizon, UPS, Walmart, Cisco, Comcast, GE, and PayPal.
Turning to the financial results, we see that Couchbase reported its fiscal 2Q25 figures at the start of last month. The top line of $51.6 million was up almost 20% year-over-year and came in just over the forecast, beating expectations by nearly a half-million dollars. At the bottom line, the company ran a net loss of 6 cents per share in non-GAAP measures, but that was 3 cents per share better than had been anticipated.
CryptoCurrency
Ripple files Form C, appeals SEC ruling on XRP institutional sales
Ripple challenges SEC’s ruling on institutional XRP sales, claiming the Howey test was misapplied.
CryptoCurrency
Bitcoin analyst: $100K BTC price by February 'completely within reason'
BTC price trajectory appears all but destined for six figures in the mid term — despite nearly eight months of Bitcoin market consolidation.
CryptoCurrency
1 Top Stock to Buy Hand Over Fist Before That Happens
2024 is turning out to be a solid year for the global semiconductor industry, driven by multiple catalysts. These include the booming demand for chips that can manage artificial intelligence (AI) workloads, a turnaround in the smartphone market’s fortunes, and a recovery in the personal computer (PC) market.
These factors explain why the global semiconductor industry’s revenue is expected to jump 16% in 2024 to $611.2 billion, according to World Semiconductor Trade Statistics (WSTS). That points toward a nice turnaround from last year, when the semiconductor industry’s revenue fell 8%. Even better, the semiconductor space is expected to keep growing in 2025 as well, with WSTS projecting a 12.5% increase in the industry’s earnings to $687.4 billion next year.
More specifically, WSTS predicts a whopping 25% increase in the memory market’s revenue in 2025 to $204.3 billion. As it turns out, memory is expected to be the fastest-growing semiconductor segment next year as well, following an estimated jump of almost 77% in this segment’s revenue in 2024.
There’s one company that could help investors tap this fast-growing niche of the semiconductor market next year: Micron Technology (NASDAQ: MU). Let’s look at the reasons why buying this semiconductor stock could turn out to be a smart move right now.
WSTS isn’t the only forecaster expecting the memory market to surge higher next year. Market research firm TrendForce estimates that the sales of dynamic random access memory (DRAM) could jump 51% in 2025, while the NAND flash storage market could clock 29% growth. Both these markets are expected to reach record highs next year.
The growth in these memory markets will be driven by a combination of strong demand and improved pricing. TrendForce is forecasting a 35% year-over-year increase in DRAM prices next year, driven by the increasing demand for high-bandwidth memory (HBM) that’s used in AI processors, as well as the growth in DRAM deployed in servers. Meanwhile, the growing demand for enterprise-class solid-state drives (SSDs) and the growth in smartphone storage will be tailwinds for the NAND flash market.
These positive trends explain why Micron is set to begin its new fiscal year on a bright note. The company’s revenue in fiscal 2024 (which ended on Aug. 29) increased 61% year over year to $25.1 billion. The company posted a non-GAAP (generally accepted accounting principles) profit of $1.30 per share, compared to a loss of $4.45 per share in fiscal 2023, driven by a big jump in its operating margin on account of recovering memory prices.
CryptoCurrency
A truly decentralized system would decentralize authority — Cardano exec
Cardano Foundation chief technology officer Giorgio Zinetti told Cointelegraph that centralized authority is good for speed, but decentralized governance would give long-term sustainability.
CryptoCurrency
Intel’s former CEO tried to buy Nvidia almost 2 decades ago
Tech pioneer Intel (INTC) has seemingly missed out on the artificial intelligence boom — and part of it can reportedly be traced back to a decision not to buy the chipmaker at the center of it all almost two decades ago.
Intel’s former chief executive Paul Otellini wanted to buy Nvidia in 2005 when the chipmaker was mostly known for making computer graphics chips, which some executives thought had potential for data centers, The New York Times (NYT) reported, citing unnamed people familiar with the matter. However, Intel’s board did not approve of the $20 billion acquisition — which would’ve been the company’s most expensive yet — and Otellini dropped the effort, according to The New York Times.
Instead, the board was reportedly more interested in an in-house graphics project called Larrabee, which was led by now-chief executive Pat Gelsinger.
Almost two decades later, Nvidia (NVDA) has become the second-most valuable public company in the world and continuously exceeds Wall Street’s high expectations. Intel, on the other hand, has seen its shares fall around 53% so far this year and is now worth less than $100 billion — around 30 times less than Nvidia’s $3.4 trillion market cap.
In August, Intel shares fell 27% after it missed revenue expectations with its second-quarter earnings and announced layoffs. The company missed profit expectations partly due to its decision to “more quickly ramp” its Core Ultra artificial intelligence CPUs, or core processing units, that can handle AI applications, Gelsinger said on the company’s earnings call.
And Nvidia wasn’t the only AI darling Intel missed out on.
Over a decade after passing on Nvidia, Intel made another strategic miss by reportedly deciding not to buy a stake in OpenAI, which had not yet kicked off the current AI hype with the release of ChatGPT in November 2022.
Former Intel chief executive Bob Swan didn’t think OpenAI’s generative AI models would come to market soon enough for the investment to be worth it, Reuters reported, citing unnamed people familiar with the matter. The AI startup had been interested in Intel, sources told Reuters (TRI), so it could depend less on Nvidia and build its own infrastructure.
-
Technology1 month ago
Is sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment1 month ago
How to unsnarl a tangle of threads, according to physics
-
Science & Environment1 month ago
Hyperelastic gel is one of the stretchiest materials known to science
-
Science & Environment1 month ago
‘Running of the bulls’ festival crowds move like charged particles
-
Science & Environment1 month ago
Maxwell’s demon charges quantum batteries inside of a quantum computer
-
Technology1 month ago
Would-be reality TV contestants ‘not looking real’
-
Science & Environment1 month ago
X-rays reveal half-billion-year-old insect ancestor
-
Science & Environment1 month ago
Sunlight-trapping device can generate temperatures over 1000°C
-
Science & Environment1 month ago
Liquid crystals could improve quantum communication devices
-
Technology4 weeks ago
Ukraine is using AI to manage the removal of Russian landmines
-
Science & Environment1 month ago
Quantum ‘supersolid’ matter stirred using magnets
-
TV3 weeks ago
সারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
Technology3 weeks ago
Samsung Passkeys will work with Samsung’s smart home devices
-
News3 weeks ago
Massive blasts in Beirut after renewed Israeli air strikes
-
Football3 weeks ago
Rangers & Celtic ready for first SWPL derby showdown
-
Science & Environment1 month ago
Physicists have worked out how to melt any material
-
Science & Environment1 month ago
Laser helps turn an electron into a coil of mass and charge
-
Science & Environment1 month ago
A new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
Womens Workouts1 month ago
3 Day Full Body Women’s Dumbbell Only Workout
-
News3 weeks ago
▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
News3 weeks ago
Navigating the News Void: Opportunities for Revitalization
-
Sport3 weeks ago
Boxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
MMA3 weeks ago
‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
News3 weeks ago
‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
Business3 weeks ago
When to tip and when not to tip
-
Science & Environment1 month ago
Why this is a golden age for life to thrive across the universe
-
Technology4 weeks ago
Microphone made of atom-thick graphene could be used in smartphones
-
MMA3 weeks ago
Dana White’s Contender Series 74 recap, analysis, winner grades
-
MMA3 weeks ago
Pereira vs. Rountree prediction: Champ chases legend status
-
Sport3 weeks ago
Wales fall to second loss of WXV against Italy
-
Sport3 weeks ago
Man City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
Football3 weeks ago
Why does Prince William support Aston Villa?
-
Science & Environment1 month ago
Quantum forces used to automatically assemble tiny device
-
Science & Environment1 month ago
ITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
Science & Environment1 month ago
A slight curve helps rocks make the biggest splash
-
Science & Environment1 month ago
Nerve fibres in the brain could generate quantum entanglement
-
Science & Environment1 month ago
Nuclear fusion experiment overcomes two key operating hurdles
-
News1 month ago
▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
Technology1 month ago
Meta has a major opportunity to win the AI hardware race
-
Technology1 month ago
Why Machines Learn: A clever primer makes sense of what makes AI possible
-
Technology4 weeks ago
Russia is building ground-based kamikaze robots out of old hoverboards
-
Business3 weeks ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Technology3 weeks ago
This AI video generator can melt, crush, blow up, or turn anything into cake
-
Technology3 weeks ago
Gmail gets redesigned summary cards with more data & features
-
MMA3 weeks ago
Julianna Peña trashes Raquel Pennington’s behavior as champ
-
Sport3 weeks ago
Aaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
MMA3 weeks ago
Ketlen Vieira vs. Kayla Harrison pick, start time, odds: UFC 307
-
Sport3 weeks ago
2024 ICC Women’s T20 World Cup: Pakistan beat Sri Lanka
-
Entertainment3 weeks ago
New documentary explores actor Christopher Reeve’s life and legacy
-
Technology3 weeks ago
Musk faces SEC questions over X takeover
-
News3 weeks ago
Woman who died of cancer ‘was misdiagnosed on phone call with GP’
-
Technology3 weeks ago
Microsoft just dropped Drasi, and it could change how we handle big data
-
Money3 weeks ago
Wetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
News3 weeks ago
Family plans to honor hurricane victim using logs from fallen tree that killed him
-
Science & Environment1 month ago
How to wrap your mind around the real multiverse
-
Science & Environment1 month ago
Time travel sci-fi novel is a rip-roaringly good thought experiment
-
Sport3 weeks ago
China Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
Sport3 weeks ago
Sturm Graz: How Austrians ended Red Bull’s title dominance
-
Business3 weeks ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
Business3 weeks ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
Technology3 weeks ago
Texas is suing TikTok for allegedly violating its new child privacy law
-
Business3 weeks ago
The search for Japan’s ‘lost’ art
-
Technology3 weeks ago
The best budget robot vacuums for 2024
-
MMA3 weeks ago
Pereira vs. Rountree preview show live stream
-
News1 month ago
▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
Sport4 weeks ago
World’s sexiest referee Claudia Romani shows off incredible figure in animal print bikini on South Beach
-
Technology4 weeks ago
Epic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Science & Environment3 weeks ago
Markets watch for dangers of further escalation
-
Business3 weeks ago
Chancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
-
News3 weeks ago
German Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
Technology3 weeks ago
OpenAI secured more billions, but there’s still capital left for other startups
-
Business3 weeks ago
Stark difference in UK and Ireland’s budgets
-
MMA3 weeks ago
‘I was fighting on automatic pilot’ at UFC 306
-
Technology3 weeks ago
The best shows on Max (formerly HBO Max) right now
-
Sport3 weeks ago
Coco Gauff stages superb comeback to reach China Open final
-
Technology3 weeks ago
J.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
News3 weeks ago
Hull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
Health & fitness3 weeks ago
NHS surgeon who couldn’t find his scalpel cut patient’s chest open with the penknife he used to slice up his lunch
-
MMA3 weeks ago
UFC 307 preview show: Will Alex Pereira’s wild ride continue, or does Khalil Rountree shock the world?
-
Business3 weeks ago
Head of UK Competition Appeal Tribunal to step down after rebuke for serious misconduct
-
Technology3 weeks ago
If you’ve ever considered smart glasses, this Amazon deal is for you
-
MMA3 weeks ago
Alex Pereira faces ‘trap game’ vs. Khalil Rountree
-
Football3 weeks ago
Simo Valakari: New St Johnstone boss says Scotland special in his heart
-
Politics3 weeks ago
Rosie Duffield’s savage departure raises difficult questions for Keir Starmer. He’d be foolish to ignore them | Gaby Hinsliff
-
News3 weeks ago
Balancing India and China Is the Challenge for Sri Lanka’s Dissanayake
-
TV3 weeks ago
Love Island star sparks feud rumours as one Islander is missing from glam girls’ night
-
News1 month ago
the pick of new debut fiction
-
News1 month ago
Our millionaire neighbour blocks us from using public footpath & screams at us in street.. it’s like living in a WARZONE – WordupNews
-
News3 weeks ago
Liverpool secure win over Bologna on a night that shows this format might work
-
MMA3 weeks ago
Kayla Harrison gets involved in nasty war of words with Julianna Pena and Ketlen Vieira
-
Money3 weeks ago
Pub selling Britain’s ‘CHEAPEST’ pints for just £2.60 – but you’ll have to follow super-strict rules to get in
-
News3 weeks ago
Heavy strikes shake Beirut as Israel expands Lebanon campaign
-
Business4 weeks ago
Stocks Tumble in Japan After Party’s Election of New Prime Minister
-
TV3 weeks ago
Phillip Schofield accidentally sets his camp on FIRE after using emergency radio to Channel 5 crew
-
News3 weeks ago
Heartbreaking end to search as body of influencer, 27, found after yacht party shipwreck on ‘Devil’s Throat’ coastline
-
Technology3 weeks ago
Apple iPhone 16 Plus vs Samsung Galaxy S24+
-
News3 weeks ago
Reach CEO Jim Mullen: If government advertises with us, we’ll employ more reporters
-
Technology3 weeks ago
Popular financial newsletter claims Roblox enables child sexual abuse
-
Travel2 weeks ago
UK’s ‘happiest islands’ have white sand beaches and attractions older than the Egyptian pyramids
-
MMA4 weeks ago
How to watch Salt Lake City title fights, lineup, odds, more
You must be logged in to post a comment Login