2023-12-15 08:00:00 ET
Perhaps no company epitomizes 2023's artificial intelligence (AI) boom more than Nvidia (NASDAQ: NVDA) . Shares of the tech giant soared a whopping 230% as investors piled in based on optimism that rising demand for its advanced chips would boost revenue and earnings. Let's discuss three reasons why the meteoric rise looks far from over.
Founded in 1993, Nvidia is known for pioneering the graphics processing unit (GPU), a computer chip originally designed to render complex visuals and animations mainly for the video game industry. GPUs work through parallel processing, which involves computing multiple tasks simultaneously. This turned out to have massive applications in non-graphics-related tasks like generative AI because it helps train large language models (LLMs) on vast amounts of data.
Nvidia's early focus on video game hardware gave it a massive head start in what is shaping up to be a much greater long-term opportunity. And the company's results demonstrate this epic transformation.
For further details see:
Up 230%, 3 Reasons Nvidia Stock Can Still Make You Richer