The shares of chipmaker Nvidia jumped by more than 2% on Wednesday after management consulting firm Bain & Company shared its technology report, which predicts “unprecedented levels of investment” in artificial intelligence (AI).
According to Bain’s report, the spending on AI chips and AI infrastructure is expected to surge exponentially in coming years as businesses look to keep up with the technology trends. The firm predicts that the total spending on AI could reach $990 billion in the next three years.
“To remain in the top tier of the market, leaders will need to make unprecedented levels of investment in technology infrastructure,” the report states.
While not all of those investments will involve Nvidia, the company is expected to largely benefit from increased spending on AI.
Nvidia has been at the forefront of the AI boom, holding between 80% and 90% of the market share for AI chips. The company’s dominant position transformed it into one of the most valuable and influential companies in the world, something Nvidia is expected to stay for the foreseeable future.
Nvidia’s stock closed at $123.51 per share on Wednesday before climbing to $124.37 per share in after-hours trading. The stock is currently 156.40% up-year-to-date, giving the company a $3.03 trillion market cap.