Nvidia's Rapid Data Center Expansion Strengthens Lead Over Intel and AMD, Fueling Upgraded Strong Buy Rating
-
Nvidia has rapidly developed new data center products including integrated CPUs/GPUs, expanded networking portfolio, and software solutions. Its product roadmap signals ongoing expansion through 2025, strengthening its competitive position.
-
Analysis shows Nvidia leading AMD and Intel in partnerships, product breadth, and benchmark performance, evidenced by Microsoft, Dell collaborations and our adjusted benchmark scores. This supports a competitive factor score applied in growth projections.
-
Data center segment drove explosive 119% 2023 estimated growth, far surpassing previous base/bull case forecasts, fueled by ramp of Hopper GPUs and Infiniband networking amid strong data center chip demand.
-
Upwardly revised 53% 3-year forward revenue growth forecast projects 60.9% Data Center segment growth on average. Segment is estimated to reach 88% of total 2026 revenue, supporting Nvidia's robust outlook.
-
Upgraded to Strong Buy with higher $808.59 price target, incorporating much higher 55.7% 5-year revenue growth projections, surpassing 10-year 25% average growth.