Prediction: This Artificial Intelligence (AI) Stock Could Be Worth More Than Nvidia by 2030

Nvidia (NASDAQ: NVDA), with a market cap of more than $3 trillion, is now one of the three largest companies in the world. This is not a fluke. The chip maker's control of the data center GPU market is estimated at around 90%. Its GPUs are widely considered the best in the world, as evidenced both by its high market share and its market-leading gross margins. The AI revolution literally runs on these GPUs, and Nvidia's dominance in the data center GPU space gives it a front-row seat to AI's long-term growth. Over time, however, competition will take its toll. It may take years, but eventually, Nvidia's market share will shrink. And long before that, we should see pricing pressure reduce its gross margins. All of this doesn't make it a poor long-term investment. In fact, Nvidia shares might be very cheap right now despite the threat of long-term competitive pressures. But like any market, competition will eventually appear, giving huge upside potential to the AI stock below.There is no doubt that Nvidia's GPUs are king right now. Rival chipmakers like Intel and AMD not only have far lower market shares in data center GPUs, but also dramatically lower gross margins -- an indicator that their chips don't command nearly the same premiums that Nvidia's do. A decade ago, Intel actually had higher gross margins than Nvidia. But thanks to the tech sector's unquenchable demand for AI accelerator chips, Nvidia is now posting some of the highest gross margins ever seen in the semiconductor industry.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool