Artificial Intelligence (AI) Adoption Rates Appear Low, but This AI Leader Could See a Massive Surge in Demand in the Next 3 Years. Here's Why.

Ryan Vanzo, The Motley Fool

Sun, Mar 9, 2025, 4:55 AM 4 min read

In a substance of years, the stock terms of Nvidia (NASDAQ: NVDA) has made it 1 of the largest companies successful the world, with a marketplace headdress that presently exceeds $3 trillion. Nvidia isn't alone, either. Many different AI stocks are exploding successful value.

But is Nvidia banal inactive a buy? According to caller probe by The Motley Fool connected AI adoption rates, the reply is simply a resounding yes. The statistic cited beneath could beryllium astonishing to many.

You're astir apt good alert of the AI craze occurring close now. But what you mightiness not recognize is that the gyration is conscionable getting started. This is going to beryllium a decades-long process, creating immense buying opportunities for aboriginal investors who stay patient. Just instrumentality a look astatine immoderate of the adoption statistic compiled by The Fool successful its caller report.

The existent adoption complaint of AI for U.S. concern stands astatine conscionable 6.8%. But the technology's projected usage complaint implicit the adjacent six months is 9.3% That's a 37% summation successful conscionable six months!

Yet adjacent aft that expected growth, full adoption of AI would stay nether 10%. "Those numbers mightiness look debased fixed however AI is often discussed arsenic a crippled changer for businesses," the study reads. But that's precisely the point. For arsenic overmuch arsenic artificial quality is talked astir today, its existent adoption remains rather low. Rapid maturation should alteration that communicative quickly, but this volition instrumentality galore years, if not decades, to afloat play out.

The Fool isn't unsocial successful its findings. According to probe from planetary consultancy McKinsey, the AI marketplace successful 2040 volition beryllium tremendously larger than it is today. The numbers aren't adjacent close.

The firm's low-end estimation has AI bundle and services gross jumping from $85 cardinal successful 2022 to $1.5 trillion successful 2040. On the higher end, the industry's gross could yet scope $4.6 trillion!

Looking astatine generative AI alone, McKinsey expects $2.6 trillion to $4.4 trillion successful added economical maturation stemming from the technology's adoption by businesses.

This is going to beryllium a maturation accidental similar fewer others successful history. But does that marque a banal similar Nvidia a bargain close now? The reply whitethorn beryllium surprising.

Identifying a maturation marketplace is antithetic than investing successful one. That's due to the fact that stocks with large imaginable are priced accordingly. So, portion the underlying maturation complaint whitethorn beryllium impressive, the valuation you wage for it whitethorn offset astir of that growth.

Right now, Nvidia is successful a funny position. For a multitrillion-dollar company, it's astonishing to spot its price-to-sales aggregate (P/S) truthful precocious astatine 21.6. Yet its gross is intelligibly connected a immense maturation trajectory. And fixed the statistic discussed above, it's tenable to expect Nvidia to proceed this for decades to come.