Where Will Nvidia Stock Be in 3 Years?

Will Ebiefung, The Motley Fool

Sat, Mar 22, 2025, 3:00 PM 4 min read

It's not overmuch of an exaggeration to accidental determination would beryllium nary generative artificial quality (AI) manufacture contiguous without Nvidia (NASDAQ: NVDA). The chipmaker's hardware was important for grooming and moving the archetypal ample connection exemplary (LLM), ChatGPT. And investors person been richly rewarded with shares up by implicit 360% implicit the erstwhile 3 years (at the clip of this writing).

But past show doesn't warrant aboriginal results, and Nvidia faces a slew of challenges and opportunities implicit the coming years. Let's research however these factors could power the show of its stock.

Nvidia's AI hardware concern is inactive booming. Fourth-quarter gross jumped 78% twelvemonth implicit twelvemonth to $39.3 cardinal arsenic it began the rollout of its caller Blackwell-based AI chips utilized to tally and bid AI algorithms. However, portion companies are inactive consenting to walk large bucks for Nvidia's latest and top offerings, it is unclear however agelong this dynamic volition last.

Generally, companies don't privation to beryllium overdependent connected a azygous supplier due to the fact that it tin marque them susceptible to shortages oregon unfavorable pricing. And portion Nvidia remains the preferred root for AI chips, companies are moving hard to diversify their proviso chains.

In February, ChatGPT shaper OpenAI financed an in-house customized spot plan with Taiwan Semiconductor Manufacturing that could deed wide accumulation successful 2026. Custom chips are designed for circumstantial tasks, allowing them to run with less unnecessary components (and perchance little costs) than Nvidia's one-size-fits-all wide marketplace solutions. If much companies determine to instrumentality this route, it could exposure Nvidia's concern to maturation and borderline pressures.

Nvidia's clients aren't the lone ones that request to instrumentality each their eggs retired of 1 basket. The chipmaker is besides alarmingly reliant connected the generative AI opportunity. Data halfway income (which see high-end AI chips) represented a whopping 88% ($115.2 billion) of 2024 sales. And the institution volition request to diversify implicit the coming years.

The company's automotive and robotics conception could play a relation successful this transition. While these businesses generated lone $1.7 cardinal successful 2024 sales, that's up by an awesome 55% from the erstwhile year. Growth tin accelerate arsenic much companies put successful technologies similar afloat self-driving vehicles -- an accidental analysts astatine McKinsey & Company judge could beryllium worthy $300 cardinal to $400 cardinal successful gross by 2035.