Have you heard of Nvidia (NVDA)? They are the jewel of the stock market right now and for good reason. The company is hitting on all cylinders. But when a stock price endlessly rises, investors get nervous thinking it will soon reach its peak and then trend lower.
While this is a valid concern, it is not applicable to Nvidia. Why? Because this company has made the right moves to plant itself as a guaranteed performer for the next 10 years, at least.
Let’s dive into Nvidia and see what makes this company so amazing and why the stock price is only going to continue to rise.
Who Is Nvidia?
Nvidia is a chip maker plain and simple. They make the processors that make computers run. But these processors aren’t your basic chips. These are high powered chips that are able to churn out massive amounts of power, allowing them to be used in many applications that lesser chips don’t stand a chance with.
And this is partly why Nvidia is special. They aren’t focused on making chips for a specific niche. By making high powered chips that can be used across many platforms, they increase their customer base.
For example, there are many high processing power applications that are on the horizon that will have an impact on the bottom line for Nvidia. This includes:
These are just a few of the applications Nvidia chips can power. And these things are going to happen. They aren’t the pie in the sky ideas that will never make it to market. You will see these things come to market in the next 5-10 years.
But what about making money today? While the ideas presented above will help drive revenue for future years, the company needs an income source today.
Enter the cloud. The cloud market today is just over $100 billion. By 2026, it is expected to grow to over $500 billion. And guess who is providing the processing chips for the dominant players in the cloud market?
Leave A Comment