Nvidia Corp (NASDAQ:NVDA) holds a prominent position on the list of Top 10 AI Stocks with the most advantages from the $1.2 trillion AI “value creation opportunity.” UBS Global Wealth Management recently released a comprehensive report examining the various layers of the AI “value chain,” projecting a combined market value opportunity of $1.2 trillion by 2027.
The AI market has been segmented into three key layers by UBS: the enablement layer, intelligence layer, and application layer. The enablement layer encompasses the infrastructure that drives the AI ecosystem, such as GPUs, data centers, cloud, and servers. UBS forecasts a revenue opportunity of $516 billion from the enabling layer by 2027. The intelligence layer serves as the brain of the AI ecosystem, with a projected $225 billion opportunity. The application layer caters to end-users and is expected to generate $395 billion in revenue opportunities by 2027.
UBS predicts that the race to achieve artificial general intelligence (AGI) could lead to a significant “capex cycle,” inflating the AI investment bubble. The report also anticipates the dominance of a few key players in the AI industry in the coming years, with “monolithic players” and “AI foundries” likely to lead the way.
Nvidia Corp (NASDAQ:NVDA) is specifically highlighted by UBS as a beneficiary of the $1.2 trillion AI opportunity, particularly in the enablement layer. The company’s GPUs and DGX Cloud offering position it well to capitalize on the market’s growth. In the intelligence and application layers, Nvidia Corp (NASDAQ:NVDA) is well-positioned for further growth, with recent product announcements showcasing its potential for expansion.
Key products like the H200 and accelerators like B200, GB200, and GB200 NVL72 are expected to drive revenue growth for Nvidia Corp (NASDAQ:NVDA) in the near future. Analysts believe that the company’s forward P/E multiple of 35.74 is attractive given its growth prospects.
Investors, including the RiverPark Large Growth Fund, have expressed confidence in Nvidia Corp (NASDAQ:NVDA) due to its strong performance and positioning in the AI market. While Nvidia Corp (NASDAQ:NVDA) ranks fourth on the list of top AI stocks, there is a belief that under-the-radar AI stocks may offer even greater returns in a shorter timeframe.
Overall, Nvidia Corp (NASDAQ:NVDA) remains a key player in the AI market, with significant potential for growth and innovation in the coming years. Investors looking for exposure to the burgeoning AI sector may find Nvidia Corp (NASDAQ:NVDA) a compelling choice, given its current position and future prospects.
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