Nvidia's revenue growth is expected to continue, with the company anticipating $24 billion worth of revenue in its current quarter. Despite this, the growth rate is expected to decline, with analysts predicting an 81% increase in revenue for the current fiscal year, compared to the 126% gain in the previous year. Nvidia's dominance in the GPU market is expected to continue for at least the next five years, but there are predictions that competition and market substitutes could weaken the company's position in the future.
Key takeaways:
- Nvidia and Amazon Web Services (AWS) have experienced significant growth in their respective sectors, with Nvidia's revenue growing from $7.1 billion in Q1 2024 to $22.1 billion Q4 2024, primarily in the company's data center business.
- Nvidia is expected to continue its revenue growth, with a projected $24 billion worth of revenue in its current quarter (Q1 FY25), representing a growth of around 234% compared to its year-ago first quarter.
- Despite Nvidia's dominance in the GPU market, competition from other chipmakers like AMD and Intel is expected to increase. However, analysts predict that Nvidia's growth will continue for at least another five years due to its diversified offerings including boards, systems, software, services, and time on their own supercomputers.
- While Nvidia is currently in a strong position, there are predictions that the company may become a weaker player in the next couple of years due to the emergence of substitutes and the realization by some companies that CPUs can be sufficient for their needs.