Projected Growth: AI Corporation's Market Value to Reach $7 Trillion by 2028
Nvidia's Domination in Data Centers Set to Soar by 2028
Nvidia, the world's largest company by market cap, is poised for significant growth in the data center market by 2028. The company's success is primarily due to its graphics processing units (GPUs), which are essential for tasks requiring high computing power, such as engineering simulations, cryptocurrency mining, and artificial intelligence (AI) model training.
Nvidia's dominance in the data center market is projected to grow significantly by 2028, driven primarily by the expected surge in global data center capital expenditures (capex) to $1 trillion by that year. Nvidia already captures around 25-30% of this spending, mostly from AI hyperscalers deploying its GPUs in data centers. This positions the company to potentially generate about $250-$300 billion in annual data center revenue by 2028, roughly doubling current figures.
Key growth factors include a massive expansion in global data center capex, Nvidia’s entrenched ecosystem advantage, innovations and new product lines, and continued high profit margins. The expected tripling of data center capex from $400 billion in 2024 to $1 trillion by 2028 reflects a compound annual growth rate (CAGR) around 26%.
Nvidia’s CUDA software, hardware integration, and wide developer adoption create barriers that competitors like AMD and Intel have struggled to overcome. Innovations such as Blackwell GPU shipments and Rubin AI systems expected before 2028 reinforce Nvidia’s competitive edge in AI training and deployment workloads.
Assuming Nvidia maintains strong profitability and a reasonable price-to-earnings (P/E) ratio, this could translate into a market capitalization as high as $6 trillion, implying share prices around $250, a marked increase from current valuations. If Nvidia is assigned a P/E ratio of 45 to account for the skew, it would be worth $7.7 trillion by 2028.
Analysts forecast Nvidia’s revenue could reach about $273-$300 billion with sustained or slightly reduced market share (25-30% of the data center capex). If the third-party market projection is accurate, Nvidia's data center revenue by the end of 2028 could be $288 billion.
However, competitive and geopolitical risks remain important considerations for investors. Competition from custom AI chips by companies like Google, AMD, Tenstorrent, Cerebras, and others could potentially impact Nvidia’s market share. Additionally, geopolitical and export control challenges, especially related to the Chinese market, might impact Nvidia’s supply chain or sales.
In conclusion, Nvidia’s projected growth in the data center segment aligns with rapid expansion in global spending on AI infrastructure, sustained technological leadership, and ecosystem strength, which collectively can drive substantial revenue and earnings growth, supporting a significant increase in stock price by 2028. However, investors should be mindful of competitive and geopolitical risks.
[1] MarketWatch
[2] Seeking Alpha
[3] CNBC
[4] Business Insider
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