This year, the four major technology companies may spend more on capital investment than the combined market cap of Pfizer and Citigroup.
NVIDIA's stock price has continued to decline into negative territory this year, dropping more than $500 billion from its early January peak, but following the announcement of substantial spending plans by its largest customer, investors are starting to adjust the company's short-term revenue forecasts.
NVIDIA (NVDA) maintains a dominant share in the AI-equipped chip market, including its latest Blackwell processor product line. The Blackwell processors enhance computing efficiency while reducing power consumption, having recorded enormous revenue growth since this new technology became mainstream in early 2023.
The sales revenue for the group in the fiscal year 2024 is expected to be just under 70 billion dollars, more than double the previous amount, and Analysts predict that the sales revenue for the fiscal year ending in January 2025 will be around 129 billion dollars.
However, expectations for achieving a further 50% growth rate next fiscal year have been shaken by the emergence of a Chinese AI startup at the end of last month.