Why Nvidia Could Define the Next Ten Years in Tech

In the rapidly evolving world of semiconductors and artificial intelligence, NVIDIA is the market leader and on an explosive path to growth. Despite facing criticism and roadblocks along the way, NVIDIA has eclipsed all milestones and is today recognized as a global tech leader, shaping the future through relentless innovation.

From Denny’s Dishes to Silicon Dreams: Nvidia’s Humble Start

The company was started in 1993 by Jensen Huang, who began his remarkable journey from humble beginnings as a dishwasher at Denny’s restaurant.  It was here, at a Denny’s in Northern California, that Huang met co-founders Chris Malachowsky and Curtis Priem, both formerly with Sun Microsystems. The founders discussed their vision: creating a chip that would enable realistic 3D graphics on personal computers. This conversation laid the groundwork for what would become NVIDIA.

The name NVIDIA comes from invidia, the Latin word for envy, with “NV” representing “next vision.” In its first year, NVIDIA secured $20 million in venture capital funding from firms like Sequoia Capital that would lead to its initial public offering (IPO) six years later, in 1999.

The AI Gold Rush: Nvidia's Perfectly Timed Pivot

Until 2021, NVIDIA was known primarily for its gaming GPUs. Everything changed with the release of ChatGPT and the rise of AI. Huang had recognized the transformative potential of artificial intelligence (AI) early and strategically pivoted the company from 2016 to 2017 to make NVIDIA “AI-ready.” The bet has paid off hugely, leading to growth in NVIDIA’s market cap from approximately 332 billion in 2021 to around 3.24 trillion currently.

From Revenue to Free Cash Flow: Why Nvidia Stands Apart

NVIDIA’s performance since 2021 has been nothing short of extraordinary. Revenue has surged from $16.68 billion to $130.5 billion in FY2025, reflecting a compounded annual growth rate (CAGR) of approximately 69%. Even more impressive are the company’s profit margins: Gross margin stands at 75%, while net profit margin has soared to 56%. Free cash flow reached $60.73 billion in FY2025, underscoring the firm’s exceptional cash-generating ability.

NVIDIA’s biggest business segment is its data center business, forming 88% of its FY25 revenue and growing by a CAGR of 108% in the past 5 years. The company is already the market leader in its Data Center, Gaming, and Professional Visualization (Workstation Graphics Business) business. The automotive business is new to NVIDIA, and the company is slowly gaining traction here, already having 20 of the top 30 EV makers and 8 of the top 10 robotaxi makers as its customers.

Trump’s Saudi Arabia Visit and TSMC Price Hike: What It Means for Nvidia

Donald Trump’s recent visit to Saudi Arabia has worked wonders for NVIDIA. The company has sealed a deal to sell hundreds of thousands of AI chips, with a first tranche of 18,000 of its newest “Blackwell” chips going to Humain, an AI startup just launched by Saudi Arabia's sovereign wealth fund. The companies have also outlined plans to build AI factories with up to 500 megawatts of capacity, including "several hundred thousand" of Nvidia's most advanced GPUs over five years.

A potential roadblock in NVIDIA’s short-term growth is a 30% price increase for advanced chip production by their primary chip supplier, TSMC. While such a hike could disrupt cost structures across the industry, Nvidia is uniquely positioned to absorb and pass on these increases. Its chips are in such high demand that price elasticity appears limited. In a recent video, even Sundar Pichai mentioned that all tech companies are looking to scale their data centers, but infrastructure bottlenecks constrain them. It can be considered a reference to limited NVIDIA-advanced chipsets that are crucial for building such technology. The company’s dominant position allows it to maintain healthy margins despite rising production costs.

One Trillion in Sight: Nvidia’s Roadmap to the Future

In a recent meeting with CNBC, CEO Jensen Huang mentioned that they have a lot of AI to build and described AI data centers as the “new factories,” forecasting a one trillion dollar investment opportunity in AI infrastructure. Goldman Sachs supports this outlook, and Deloitte and PwC also see sustained growth in cloud infrastructure and generative AI applications.

Deloitte estimates that the AI chip market, valued at $50 billion in 2024, could grow to $400 billion by 2027. NVIDIA is uniquely positioned to capture the lion’s share of this expansion as the leader in AI chipsets.

One Trillion in Sight: Nvidia’s Roadmap to the Future

In a recent meeting with CNBC, CEO Jensen Huang mentioned that they have a lot of AI to build and described AI data centers as the “new factories,” forecasting a one trillion dollar investment opportunity in AI infrastructure. Goldman Sachs supports this outlook, and Deloitte and PwC also see sustained growth in cloud infrastructure and generative AI applications.

Deloitte estimates that the AI chip market, valued at $50 billion in 2024, could grow to $400 billion by 2027. NVIDIA is uniquely positioned to capture the lion’s share of this expansion as the leader in AI chipsets.

NVIDIA is already driving this trend, with their H100 and next-generation Blackwell chips forming the backbone of modern AI models and data center operations.

Why Nvidia Could Be This Decade’s Defining Business Story

NVIDIA has built a strong reputation over the years and is slowly becoming synonymous with AI. While its P/E ratio of 45.18 may seem high, the forward P/E drops to around 30.45, making it much more reasonable.

Considering the exponential growth demonstrated in the past and future potential, NVIDIA appears well-positioned to become the world's No. 1 company by market cap, exceeding the likes of Microsoft and Apple. If data is the new oil, NVIDIA might just be the new Saudi Aramco.