Nvidia en route to $4 trillion

This week, Nvidia surpassed Apple and Microsoft earlier in the month to become the most valuable corporation in the world. According to Wedbush analysts, those three companies—and the race to a $4 trillion market valuation in the IT industry—will be the main players in the next year.

The investment firm points out that since all generative AI applications rely on Nvidia's GPUs, the company is positioned to play a key role in the AI revolution due to its dominance in data centre AI expenditure. According to their tech bull thesis for 2024–2025, Nvidia and Microsoft are expected to benefit the most from this trend, with secondary and tertiary effects starting to show signs of manifestation.

According to Wedbush, over 70% of businesses will implement AI use cases over the next three years, which will result in an additional $1 trillion in expenditure on AI over the following ten years.

The potential presented by AI to Apple is twofold, according to Wedbush analysts.

The introduction of its AI plan may cause its sizable user base to update their iPhones significantly, and developers will produce a large number of applications on Apple's AI platform, thus creating a new AI App Store in the years to come. This "will be the main way that consumers interact with generative AI," according to analysts.

(Sources: investing.com, reuters.com)