The simple answer is Al. Amongst other things, but currently Al is the latest Buzzword on everyone's lips!
NVIDIA stock closed near a trillion-dollar market value this week as shares surged
25% following a better than expected earnings report from an artificial intelligence boom globally.
This puts NVIDIA at around 160% plus on the year in terms of it's stock price. This in turn attracts late comers to the party.
Of course, they were already on the up n up from growth since the Pandemic. The Covid outbreak and lockdowns around the world meant gaming took off in a big way. Cloud adoption surged and crypto enthusiasts turned to its chips for mining coins.
To make things 'better' Goldman Sachs analysts now estimate that U.S. investment in Al could approach 1% of the country's economic output by 2030. All green lights for Al and NVIDIA.
But the reason this tech company, more than others right now is soaring?
Well, did you know???
The large computers that process data and power generative Al run on powerful chips called graphics processing units (GPUs).
Nvidia produces about 80% of GPUs, according to analysts.
What else is there to know?
Comments
There are alternatives to NVDA's overpriced chips when it comes to ML. Apple & Google have their own chips. Others will be created as time goes on. AMD chips will also improve.
Now, what does this have to do with nvidia? Today, Nvidia provides a suite of machine learning and analytics software and AI models and services.
The smart money is on Nvidia's very large moat, and early first mover adoption to keep them ahead of the pack for years to come.
With so much talk about AI, I think it’s important to talk about what it means, where we are at, and how this relates to Nvidia.
What's the big deal with AI 90% will be pron anyway.