It is, however, pretty likely that this market will not grow by 30% per year forever. That is, from what we know today, not sustainable, due to the law of large numbers (which states that growth must inevitably slow down as a company gets bigger), and due to the fact that NVIDIA's target markets are not nearly growing at a clip this high.Ĭryptocurrency mining is volatile, and demand for mining hardware can thus fluctuate a lot from year to year. During the most recent year, its growth was even stronger, as year-over-year revenue growth came in at 68% during the most recent quarter. NVIDIA has grown its revenue by 260% over the last five years, which pencils out to a 30% annual growth rate.
That is, however, still way less than NVIDIA's growth in the recent past: Data by YCharts That will provide for a solid growth baseline, and with some market share gains, NVIDIA could grow its sales by double-digits.
These markets will likely remain strong - the gaming hardware market, for example, is forecasted to grow by 7% annually through 2025. On top of that, the strong performance of NVIDIA's GPUs when it comes to AI tasks has resulted in tailwinds for this part of its product lineup, as NVIDIA was able to sell more and more chips for specialized use cases such as automation, research, etc. NVIDIA's outperformance was fueled by strong demand for its GPUs from gamers and cryptocurrency miners. Some, such as NVIDIA Corporation, have grown at above-average rates for the last couple of years, while others have underperformed relative to the industry median. Not all semiconductor companies have benefitted to the same degree, however.
The semiconductor industry has experienced attractive growth over the last couple of years on the back of tailwinds such as digitalization, the internet of things, autonomous driving, etc. Great Growth In The Past, Solid Growth In The Future Shares have declined by around 10% from the all-time high in recent weeks, but they are not cheap enough to warrant a Buy rating yet. But growth will inevitably slow down over the coming years, and shares are trading at a relatively high valuation. NVIDIA Corporation ( NASDAQ: NVDA) is a leading semiconductor company with a great growth track record. Antonio Bordunovi/iStock Editorial via Getty Images Article Thesis
0 kommentar(er)
