$NVIDIA(NVDA)$ Nvidia's new Rubin architecture is set to roll out later this year, with several improvements over the already impressive Blackwell. Rubin chips are said to run inference at a tenth of the cost and train models at a quarter of the cost. These are significant benefits that should command a premium over prior generations, helping Nvidia sustain its strong revenue growth.
Moreover, the AI build-out is far from over. Nvidia estimates that by 2030, global data center capital expenditures will reach $3 trillion to $4 trillion annually. That might sound far-fetched, but Nvidia itself projects the major AI hyperscalers will spend $1 trillion in 2027. If both projections pan out and Nvidia maintains its market share, the returns on its stock could be phenomenal, easily outpacing the market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments