The Motley Fool's Keithen Drury estimates that a $1,000 investment split between Alphabet and Nvidia could exceed $3,000 by the end of 2030. His forecast assumes Nvidia's revenue quadruples and Alphabet's revenue and profits grow 25% annually.
Nvidia estimates global data-center capital spending could reach $3 trillion to $4 trillion by 2030. Drury compares that with about $800 billion currently spent by the five largest AI hyperscalers and describes it as roughly a fourfold market opportunity. For Alphabet, he cites 24% growth in the second quarter as support for his 25% annual-growth assumption; he says that could more than double its stock.
Nvidia's GPUs are used across the AI industry, while Alphabet has designed TPUs, outsourced their fabrication to Broadcom and sells them to other companies for workloads that need less flexibility. Google Cloud grew 82% in the second quarter, and Alphabet is spending $200 billion on data-center capital expenditures this year. Drury disclosed positions in Alphabet, Broadcom and Nvidia.
