Nvidia has already seen significant growth in the AI market, with its graphic processing units (GPUs) becoming the industry standard for fast computing. The company’s revenue reached record levels, with shares soaring 171% last year and 238% in 2023. Despite this success, some investors may wonder if there’s room for further growth.
However, Nvidia’s AI efforts are just getting started. The company is well-positioned to capitalize on the growing demand for agentic AI, a technology that enables AI agents to tackle complex problems. These agents gather data from various sources and use large language models to “reason” and find solutions.
Nvidia offers developers tools to build and deploy agentic AI, working with partners to create blueprints for its Enterprise software platform. The company has also announced an AI blueprint for video summarization, allowing developers to create agents that can analyze huge quantities of video content.
Industry analysts forecast the agentic AI market to reach $48 billion by 2032, growing at a compound annual rate of 19%. Deloitte predicts that about 25% of companies using generative AI will launch AI agent pilots this year, increasing to 50% by 2027. With its leadership in AI and commitment to innovation, Nvidia is well-positioned to benefit from this growth.
In fact, Nvidia CEO Jensen Huang has described the opportunity for agentic AI as “gigantic.” The company’s tools and platform will enable developers to build these agents, which could serve companies and industries in various ways. With its strong position in the market, Nvidia is poised to ride the wave of agentic AI growth and potentially see significant gains in earnings and share price over the long term.
Source: https://www.fool.com/investing/2025/01/08/prediction-new-ai-opportunity-for-nvidia