Nvidia: The Unstoppable Rise of an AI Giant

Nvidia surprised in its third fiscal quarter of 2025 with a record revenue of USD 35 billion, representing a 94% increase compared to the previous year. This led to an adjusted earnings per share of USD 0.81, an increase of 103%. These impressive figures were primarily driven by the data center sector, characterized by rising demand for AI, data centers, and cloud computing. Revenue in this segment rose by a remarkable 112% to USD 30.8 billion. The long-term outlook for Nvidia appears promising. Analysts from Goldman Sachs Research forecast that the AI market could exceed the USD 7 trillion mark by 2030. Particularly with an economic recovery, companies are willing to invest in new technologies, which should benefit Nvidia. Despite the surge in the AI sector, it should not be forgotten that gaming has long been the backbone of Nvidia's growth. However, the dominance of AI has surpassed this area. Nevertheless, gaming products still account for 10% of revenue and could benefit from an improved economy. Experts expect that pent-up demand will lead to a catch-up need, especially in the pre-Christmas period. In the second quarter, Nvidia captured 88% of the market for discrete desktop GPUs. According to Mordor Intelligence, demand for video game processors is expected to rise dramatically over the next five years, from USD 3.6 billion in 2024 to USD 15.7 billion by 2029. Nvidia is in a strong position to benefit from these developments. The data center market is also experiencing rapid growth thanks to digital transformation. Nvidia controls an estimated 95% of the GPU market for data centers and could further expand its market share, as this sector grows more than double by 2030. With a current market value of approximately USD 3.58 trillion, Nvidia would need to increase its revenue to about USD 352 billion annually to achieve a market capitalization of USD 10 trillion. Wall Street forecasts an annual revenue growth of 47% over the next five years. According to Beth Kindig from the I/O Fund, Nvidia could even reach this ambitious goal by 2030. Despite the rise, there are risks. In the summer, the stock fell by 27%, but the price quickly recovered. Nvidia remains a highly attractive investment for risk-tolerant investors.