1 Technology Stock That Has Created Millionaires, and Will Continue to Make More

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1 Technology Stock That Has Created Millionaires, and Will Continue to Make More
1 Technology Stock That Has Created Millionaires, and Will Continue to Make More

If you are looking for a technology stock that has the potential to make you rich, you might want to consider Nvidia (NASDAQ: NVDA). This company is the leader in artificial intelligence (AI) chips, which are powering the next wave of innovation in various industries. Nvidia has already made many investors millionaires, and it is not showing any signs of slowing down. Here are some reasons why Nvidia is a great stock to buy and hold for the long term.

Nvidia is the king of AI

AI is transforming the world as we know it, from self-driving cars to smart homes to healthcare. AI applications require massive amounts of data and computing power, which is where Nvidia’s chips come in. Nvidia’s graphics processing units (GPUs) are designed to handle parallel processing, which makes them ideal for AI tasks. Nvidia also offers specialized AI chips, such as Tensor Cores and CUDA Cores, that accelerate deep learning and machine learning.

Nvidia has a dominant position in the AI chip market, with a market share of over 80%¹. The company’s AI platforms, such as CUDA, TensorRT, and Jetson, are widely used by developers, researchers, and enterprises to create and deploy AI solutions. Nvidia also partners with leading cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, to offer AI services to customers.

Nvidia’s AI business is growing rapidly, as the demand for AI solutions increases across various sectors. In the fiscal year 2023, Nvidia’s data center revenue, which includes its AI products, grew by 124% year over year to $6.7 billion². The company expects its data center revenue to grow by another 50% in the fiscal year 2024³.

Nvidia is diversifying its revenue streams

While AI is Nvidia’s main growth driver, the company is not relying on it alone. Nvidia also has a strong presence in other markets, such as gaming, professional visualization, automotive, and edge computing. These markets provide Nvidia with additional sources of revenue and growth opportunities.

  • Gaming: Nvidia is the leader in the gaming GPU market, with a market share of over 80%⁴. The company’s gaming GPUs, such as the GeForce RTX series, offer superior performance and features, such as ray tracing and DLSS, that enhance the gaming experience. Nvidia also offers cloud gaming services, such as GeForce Now, that allow gamers to stream games from the cloud to any device. In the fiscal year 2023, Nvidia’s gaming revenue grew by 41% year over year to $7.8 billion².
  • Professional visualization: Nvidia’s professional GPUs, such as the Quadro and Tesla series, are used by professionals in various fields, such as design, engineering, animation, and scientific research. These GPUs enable high-performance computing, rendering, and simulation for complex tasks. Nvidia also offers software solutions, such as Omniverse and Isaac, that facilitate collaboration and creation in the virtual world. In the fiscal year 2023, Nvidia’s professional visualization revenue grew by 16% year over year to $1.1 billion².
  • Automotive: Nvidia’s automotive products, such as the Drive platform, are used by car makers and suppliers to develop and deploy autonomous driving and infotainment systems. Nvidia’s Drive platform supports various levels of autonomy, from driver assistance to fully self-driving. Nvidia also offers simulation and validation tools, such as Drive Constellation and Drive Sim, that enable safe and scalable testing of autonomous vehicles. In the fiscal year 2023, Nvidia’s automotive revenue grew by 13% year over year to $536 million².
  • Edge computing: Nvidia’s edge computing products, such as the Jetson and EGX platforms, are used to deploy AI applications at the edge of the network, where data is generated and consumed. Edge computing enables faster and more efficient processing of data, without relying on the cloud. Nvidia’s edge computing products are used in various applications, such as smart cities, robotics, industrial IoT, and healthcare. In the fiscal year 2023, Nvidia’s edge computing revenue grew by 35% year over year to $691 million².

Nvidia is investing in the future

Nvidia is not resting on its laurels, but rather investing heavily in research and development, acquisitions, and partnerships to maintain its competitive edge and expand its addressable market. Some of the recent initiatives that Nvidia has undertaken include:

  • Acquiring Arm: Nvidia announced its intention to acquire Arm, the leading designer of chip architectures, for $40 billion in September 2020⁵. The deal, which is still pending regulatory approval, would give Nvidia access to Arm’s vast ecosystem of customers and partners, and enable Nvidia to create integrated solutions for various markets, such as mobile, IoT, and cloud. The deal would also enhance Nvidia’s AI capabilities, as Arm’s architectures are widely used in AI devices.
  • Launching Grace: Nvidia unveiled its first data center CPU, named Grace, in April 2021. Grace is an Arm-based CPU that is designed to handle the most demanding AI and high-performance computing workloads. Grace is expected to deliver 10 times the performance of current CPUs, and will be available in 2023. Grace will complement Nvidia’s existing GPU and DPU products, and offer customers a complete solution for data center computing.
  • Partnering with Google: Nvidia announced a strategic partnership with Google Cloud in April 2021. The partnership will enable Google Cloud customers to access Nvidia’s AI products and services, such as TensorRT, Jarvis, and Merlin, through Google Cloud’s AI Platform. The partnership will also enable Google Cloud customers to use Nvidia’s GPUs and DPUs for various cloud computing tasks, such as data analytics, machine learning, and gaming.

Nvidia is a millionaire-maker stock

Nvidia has been a phenomenal stock to own over the past decade, delivering a staggering return of over 4,000%. A $10,000 investment in Nvidia 10 years ago would be worth over $400,000 today. And that’s not even counting the dividends that Nvidia has paid along the way.

But Nvidia is not done yet. The company still has plenty of room to grow, as the demand for its products and services continues to increase. Nvidia is well-positioned to capitalize on the huge opportunities in AI and other markets, and to create value for its shareholders. Nvidia is a stock that can make you a millionaire, and keep making you richer.

Source:
(1) 1 Technology Stock That Has Created Millionaires, and Will Continue to Make More. https://www.msn.com/en-us/money/other/1-technology-stock-that-has-created-millionaires-and-will-continue-to-make-more/ar-BB1heZD1
(2) 1 Technology Stock That Has Created Millionaires, and Will Continue to …. https://www.nasdaq.com/articles/1-technology-stock-that-has-created-millionaires-and-will-continue-to-make-more
(3) 1 Technology Stock That Has Created Millionaires, and Will Continue to …. https://www.barchart.com/story/news/23591652/1-technology-stock-that-has-created-millionaires-and-will-continue-to-make-more
(4) 1 Technology Stock That Has Created Millionaires, and Will Continue to …. https://www.fool.com/investing/2024/01/25/1-technology-stock-that-has-created-millionaires/
(5) 1 Artificial Intelligence (AI) Growth Stock That Created Many … – MSN. https://www.msn.com/en-us/money/companies/1-artificial-intelligence-ai-growth-stock-that-created-many-millionaires-and-will-continue-to-make-more/ar-AA1lD45g

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