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Nvidia Stands To Grow Taller In The Tech World
In recent times, the tech industry has undergone a significant shift. Unlike the past where we had linear progress in hardware and competitive market players like Microsoft and Meta are making AI-powered investments, Nvidia stands out as the largest publicly traded tech company in the American market.
Jensen Huang’s leadership underpins Nvidia’s remarkable rise to prominence. The company has experienced an impressive 75% stock increase over the past year, reaching a market capitalization of $4 trillion. Projections suggest that Nvidia will add another 20% to this figure by the end of the year, placing it at $5 trillion.
Market forces have driven Nvidia’s future growth, with two key factors contributing to its success. First and foremost is robust domestic demand for hardware. The other critical aspect is access to the Chinese market, which Nvidia recently secured following the Trump administration lifting export controls on H20s.
Furthermore, publicly available data suggests that Microsoft and Meta are planning significant investments in AI. Notably, Microsoft has increased its capital expenditure forecast for 2025 to $66-$72 billion, with plans for multi-gigawatt data centers, custom in-house compute systems, and NVIDIA GPU clusters.
Microsoft’s commitment to AI is expected to translate into over $30 billion of investment in a single quarter alone. This will likely result in a full-year 2025 investment exceeding $80 billion. Microsoft is set to invest in NVIDIA hardware, including the Blackwell and H100 accelerators, as well as expand global cloud data centers and support AI-powered products like Microsoft Copilot.
The impact of this development on Nvidia’s stock price is striking. The company’s decision to focus exclusively on AI has paid off remarkably.
Source: www.forbes.com
