Nvidia Stock Could Look Very Different in 5 Years

Nvidia (NASDAQ: NVDA) is the most important company in artificial intelligence (AI) today, the near-monopoly supplier of the chips that train the world's AI models. But five years from now, I suspect it will look like a very different business. The forces reshaping it are already visible if you look closely.Right now, the overwhelming majority of Nvidia's revenue comes from selling powerful GPUs to a handful of giant cloud companies building AI. Over the next five years, that mix should broaden in important ways.The market for running AI models, known as inference, is likely to dwarf the market for training them, and it favors a wider range of customers. Nvidia is also quietly building a software business on top of its hardware, from its CUDA platform to enterprise AI tools, and recurring software revenue tends to be stickier and higher margin than one-time chip sales. A company that leans more on software and inference is a steadier one. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool