How far can NVIDIA fly?

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NVIDIA is riding high on the Artificial Intelligence (AI) wave. All the hard work it has been doing in the past few years is paying rich dividennds.

NVIDIA beats street expectations

The street was expecting a positive set of numbers from NVIDIA and it sure has delivered on that front.

What does NVIDIA's performance says in terms of numbers?

As per the NVIDIA's official press release, for the quarter ended 30th July 2023
NVIDIA has recorded a Revenue of $13.51 Billion which is up by 101% on a year on year basis.
If we see the numbers in comparison to its previous quarter then it is up by a healthy 88% from its previous quarter.

The General Accepted Accounting Principles (GAAP) earning for every diluted share stands at $2.48 which has jumped by a huge 854% as compared to its previous year.
Comparing the numbers on a quarter to quarter basis this is up 202% from its earlier quarter.

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A lot of this growth is the result of how the world of business and computing is moving from general purpose computing to generative Artificial Intelligence (AI) and acceleratedComputing.

The Generative Artificial Intelligence (AI) leverages NVIDIA GPU's connected to NVIDIA's Mellanox networking and switch technologies that power the CUDA Artificial Intelligence (AI) software.

Currently Nvidia has emerged as the trusted leader and backbone for proving the computing power especially when it comes to AI.
It has earned the respect of the industry and established itself as a trusted brand in this area.

Despite the fact that there are quite a few companies that are working in this space yet names like NVIDIA & Broadcom seem to be the most prominent ones in this space.

The space is heavily dominated by NVIDIA

Companies like AMD and Intel may have similar business interests however currently NVIDIA is far ahead of the competition.

This is an extremely specialized & competitive market

NVIDIA operates in a market that has some big tech names competing to grab a market share.

A lot of companies out therehave an Artificial Intelligence (AI) narrative propelling their business interests.
However with only two of these contenders are showing real profits and these are Nvidia and broadcom.

From the profits perspective other players might look as being left behind.
However it may be noted that the Artificial Intelligence (AI) race is not a 100 meter dash but a marathon
So if you see players like AMD, Intel, Google and some other players running at their own pace this is because each of them has a different pace of growth and strategy to get a piece of the Artificial Intelligence (AI) action.

Trying to develop products and services in the field of Artificial Intelligence (AI) is a very complex process.

Going by the tech updates both Googles and the Amazon have been developing and building their own chips which has been in development for a number of years now.
However currently it is NVIDIA which has been a clear winner in terms of being able to encash a trend and fuel a hunger for a technology that is only growing by the day.

This has been the year of NVIDIA

As its performance keeps getting better and it keeps hitting higher numbers with each quarter.

What if this is an Artificial Intelligence (AI) bubble?

A lot of skeptics have been comparing the Artificial Intelligence (AI) hype to that of the dot com bubble.

However a contrarian view has been what Artificial Intelligence (AI) is already delivering.
If you look at applications like Chat GPT it is already doing so well for its users and helping them increase there productivity.
ChatGPT is only one Artificial Intelligence (AI) offering. There are many spin offs that are more advanced as compared to chatGPT and then there are image processing generative Artificial Intelligence (AI) offerings.

The users are only waking up to the possibilities of Artificial Intelligence (AI) & Generative AI
With the current trend the growth numbers are not likely to stop any time soon and this trend can be seen to grow for quite some time.

The current use cases are offering tools to help improve the working of graphic designers, content writers and online marketeers and many more.

Even coders and software developers are making use of these tools

Artificial Intelligence (AI) chatbots are already helping businesses in so many industries.

We see some cool animations made with AI.
These trends do not surprise us anymore nor do they make the news.

Perhaps we could move in the direction of drug discovery and finding cures becoming more mainstream and a common practice like people using chatGPT or a word processor.

Taking healthcare to the remotest corners of the world and begin to save lives could be another field that AI can conquer .

Such applications would make Artificial Intelligence (AI) even more indispensable.

Final Thoughts

Artificial Intelligence (AI) is the reality that is unfolding.

For companies like NVIDIA that are working at the bleeding edge of technology the sky is the limit.

Though at some point some of its peers would surely try to catch up however as of now neither its users nor its shareholders have any reasons to complain.

For the end consumer and user this seems to be the right time to jump in and update their skills so that they are able to harness the technology that can give their careers a life changing boost.

Posted Using LeoFinance Alpha