NVIDIA management is pleased with the long -term potential of the company’s growth.
Capital costs related to the data center by 2028. Could reach $ 1 trillion each year.
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There were never a $ 5 trillion dollars worth of companies. The nearest companies that have reached that phase Microsoft(Nasdaq: MSFT) and Nvidia (NASDAQ: NVDA); Both companies’ market capitalization is about $ 3.5 trillion. With their current growth trajectories as a manager, they could reach that $ 5 trillion -worth of $ 5 trillion over the years. But which one will you get there first?
The signs indicate NVIDIA based on the impressive growth and the growing market of their products. Although Nvidia has made money for investors in the last few years, there are still a lot of waiting, so at this point it is attractive.
That is why NVIDIA can be the first $ 5 trillion company by 2028.
Image Source: Getty Images.
The NVIDIA carpet takes place with the carpet of artificial intelligence (AI) and data centers that help process AI calculations. Ai hypercalers (Large -scale cloud service providers offering huge computing resources, storage facilities and network development infrastructure) Like Microsoft, it is racing to install as much equipment as possible to run AI workloads. In this way, they can benefit from a variety of companies operating on their servers by taxing use fees.
Although several companies follow this approach, NVIDIA is the main supplier of graphics processing units (GPU) at their activities center. And although there are alternatives to Nvidia products, it has 90% or more of the data center on the GPU market, much like Alphabetdominance in the search engine industry (through Google). This helps NVIDIA dominate the prospect. Better yet, the demand for data centers is growing much faster than it grows in the search.
Almost every AI hypercaler in 2025. Published the capital costs of the record data center. Planning, developing and construction sites where these centers are built will last for a year, so these increased costs will remain for years. A third -party estimate of NVIDIA stated in its 2025 Said the GTC event, said the World Data Center costs in 2024 Was $ 400 billion, but it is expected that by 2028 It will increase to $ 1 trillion.
For the link, within 2025 (This includes the Great 2024), the NVIDIA Data Center department has earned $ 115 billion in revenue. So for all $ 100 in data centers, approximately $ 29 went to NVIDIA.
What will this mean Nvidia in the future?
Let’s take a conservative approach to these growth ratings. Let’s say data center capital costs increase by only $ 800 billion, while NVIDIA has a reduction in that revenue from 29% to 25%. If this happens, NVIDIA will still earn about $ 160 billion in dollars from data centers alone in 2028. 2025 NVIDIA has earned $ 16 billion in revenue in non -data centers offices.
Assuming that other units will not grow and connect with the expected data center revenue, we would receive $ 216 billion. This is a 46% profit compared to today’s income.
Ycharts data.
If the upper limit of the NVIDIA market would increase the respective revenue growth, it would be $ 5.03 trillion.
Certain warnings of this argument exist, for example, what will happen if the NVIDIA margin slips or if its assessment is significantly reduced. However, we have already created some of them by removing a certain market share and reducing the total number of data center development dollar.
I think Nvidia will be the first company to cross the $ 5 trillion dollars, and it will probably do it in the next few years. NVIDIA’s potential is still growing and investors should ensure that they invest in this top -level AI game in the near future.
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Suzanne Frey, Alfabet executive, is a member of the Board of Motley Fool. Keithen Drury occupies positions in the alphabet and Nvidia. The Motley fool is a position and recommends the alphabet, Microsoft and Nvidia. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
Forecast: This shares of artificial intelligence (AI) until 2028 Posted a $ 5 trillion -worth of market in the top bounds originally released by The Motley Fool
