Nvidia is doing very well in the AI race and is quickly surpassing other tech behemoths. It’s stock has seen a double-digit increase in value and is now one of the most sought-after stocks in the S&P 500 index. In November of 2020, a new AI-powered chatbot called ChatGPT was released to the public and created a wave of enthusiasm and investment in generative AI technology. This has allowed Nvidia, who already had strong foothold in the data center market, to reap significant near-term gains from the race to utilize generative AI.
Nvidia’s Chief Financial Officer Colette Kress mentioned the company has seen a “more and more demand” from its major clients. Wall Street is also impressed with the company’s advancements in the field of IA and sees the company becoming the “de-facto standard” for AI and generative AI applications.
But it’s market worth and share price are making some analysts a bit cautious. Data-center operation doesn’t always go at a consistent pace and Nvidia might see some competition from Advanced Micro Devices (AMD) when they start rolling out GPUs to the data center market. But all in all, it’s seen as an opportunity that can easily succeed and investors would be wise not to pass.
A notable figure in the mentioned article is Mark Lipacis of Jefferies who characterized Nvidia’s advancements in generative AI technologies as making the company the “de-facto standard” for such applications. Mark Lipacis is an American Investment analyst and a director at Jefferies. His primary focus is on analyzing semiconductor stocks. He currently serves as a managing director and equity research analyst at Jefferies and has an extensive financial and business background.
Companies mentioned in the article are mainly tech-giants like Microsoft, Google, Tesla and Facebook and their parent company, Meta Platforms, as well as Berkshire Hathaway. Microsoft and Google are some of the most profitable companies in the world and are well-known for the services they provide such as Office suite and Google’s suite of tools and software. Tesla is an American automotive and energy company that specializes in electric car manufacturing and renewable energy solutions while Facebook is a social media giant and probably the most influential connected platform in existence. Meta Platforms is the parent company of Facebook and Berkshire Hathaway is an American multinational conglomerate holding company led by legendary investor Warren Buffett.
