Lit. On fire. Absolutely red-hot. These are all ways to describe Nvidia (NVDA 1.27%); the superstar stock has everyone talking. Of course, the big question is: Can Nvidia's stock keep sizzling, or is it about to fizzle out?
Obviously, no one knows for sure. However, there is one chart that might point to more upside for the king of Artificial Intelligence (AI) chips. Let's have a closer look.
AI mania -- visualized in a single chart
First things first: Nvidia is the world's leading designer of Graphics Processing Units (GPUs) -- advanced semiconductors that possess incredible computing power.
Bear in mind, GPUs are very different from the microprocessor that runs your desktop computer. Nvidia's best-selling GPU, the H100, weighs upwards of 35 lbs. and costs $40,000 or more. Moreover, these cutting-edge devices are often sold in bundles of eight -- meaning a full system package weighs between 280 and 400 lbs. and costs more than what I paid for my first home.
In short, these aren't the sorts of devices that anyone purchases lightly, but given their enormous power -- these are the brains behind the latest and greatest AI applications -- demand for these products is through the roof.
For example, consider this simple, two-bar chart showing the size of the GPU market in 2022 and its estimated size in 2032:
Image source: Statista
That's right, the size of the GPU market is projected to grow 10x between 2022 and 2032. Let that sink in. It's an enormous leap, and it's expected to happen in only a decade.
What's more, it's entirely possible that the GPU market will grow faster than the estimates. AMD Chief Executive Officer (CEO) Lisa Su recently noted that she believes the GPU market will hit $400 billion by 2027 -- only three years from now.
At any rate, this incredible growth of the GPU market is the reason behind Nvidia's amazing stock surge. And with the AI revolution in full swing, it's possible Nvidia's massive run could continue for some time to come.
