AI Boom: Nvidia on a Path to Success with Impressive Growth

The search for the next groundbreaking technology culminates for many in the field of generative Artificial Intelligence (AI). In this area, Nvidia is at the forefront, as the demand for their AI-capable chips is rapidly increasing. This is reflected in a remarkable 193% increase in Nvidia's stock price in 2024—a potential that catches investors' attention. The future prospects for the AI market are impressive. Analysts from Bloomberg forecast an annual growth of 42%, which could propel the market to $1.3 trillion by 2032. Currently, the focus is on the hardware for training and inference of large language models, a field where development is progressing faster than expected. Nvidia holds between 75% and 95% of the market share in graphics processors for AI, making the company a key indicator for the entire AI infrastructure. The recent quarterly figures substantiate this success: a 122% increase in revenue to $30 billion, driven primarily by the data center segment, supplied with top chips like the h100 and h200 models. This segment experienced growth of 154%, as cloud giants such as Alphabet, Microsoft, and Amazon are among the main customers. Despite the high demand that exceeds supply, Nvidia can boast an impressive gross margin of 76% and an operating income of $7.8 billion. While competitors like Advanced Micro Devices also strive to establish themselves in the AI chip market, Nvidia remains ahead, not least thanks to the CUDA software, which allows customers to optimize their infrastructure. This technological differentiation makes it difficult for developers to switch to other providers. In the future, Nvidia aims to build on past successes with new products like the Blackwell chips, which are expected to significantly accelerate AI training.