Should You Jump on the Nvidia Train? These Reasons Suggest It Will Keep Climbing…

As of Tuesday (March 12th), Nvidia closed up more than 7%, at $919.13, with a gain of over 90% since the beginning of the year. Nvidia’s strong momentum has propelled its market value to surpass Amazon and Alphabet, closely chasing Apple. Everyone is exclaiming: Explosive! Nvidia, almost single-handedly, has driven the massive surge in the entire U.S. tech sector. Subsequently, Nvidia, “far ahead,” has become the world’s most important chip company, fervently sought after by investors.

In the future, can this AI company, valued at 2 trillion dollars, dominate the AI world?

Planting the Seeds of AI

Nvidia’s stock surge is inseparable from the AI revolution triggered by models like ChatGPT and Sora, as well as its own foundation in the AI field. At the dawn of the AI era, Nvidia has almost “monopolized” AI.

Nvidia’s main business is designing and manufacturing graphics processing units (GPUs) for gaming, visualization, and other domains. However, Nvidia’s strategic adjustments and timely entry into multiple booming markets over the past few decades have solidified its dominant position in AI.

In the early 2000s, Nvidia’s pioneering development of the GeForce 256 GPU cemented its supremacy in the GPU market. Over the following years, Nvidia achieved remarkable improvements in chip performance and AI computation.

Indeed, while Nvidia primarily focused on gaming graphics, it was among the first to research AI architecture in chip design, accurately predicting the convergence of graphics processing and signal research. This foresight in using AI technology to better process images and videos laid the foundation for Nvidia’s future development.

Progressive and Unstoppable

Starting in 2013, as cryptocurrencies like Bitcoin and Ethereum emerged, Nvidia’s chips were proven advantageous for mining. Consequently, a large number of miners adopted Nvidia’s chips. Thus, Nvidia transformed into a hot blockchain concept company.

As blockchain hype cooled down, in 2016, Tesla introduced the concept of electric vehicles and autonomous driving. Autonomous driving systems require extensive graphics processing, and once again, Nvidia’s graphic chips took the lead. Nvidia added to its achievements in the autonomous driving field, and its stock price soared. By 2020, Nvidia reached a historical turning point when its data center revenue exceeded gaming revenue, becoming the main revenue driver.

In the second half of 2021, the concept of the metaverse was hyped by Zuckerberg. Nvidia’s graphics processing capabilities shone again in the virtual 3D domain. In October 2021, Nvidia’s market value surpassed TSMC, becoming the world’s highest-valued chip company for the first time, with a peak value exceeding 800 billion dollars.

However, the metaverse faced a slow start and eventually became a bubble. Affected by various factors, including global inflation, Nvidia’s stock price once fell to $108.

Just when it seemed Nvidia might quiet down, in 2022, ChatGPT emerged, igniting the AI craze.

Nvidia’s A100 and other chips came back into the spotlight! Almost all AI companies worldwide needed Nvidia’s A100 chips to train large models. With the start of 2024, Sora went viral, and Nvidia declared: I have taken off!

Indeed, Nvidia has been on top of every trend over the decades. From gaming to AI, Nvidia’s core competitiveness has always been its ability to process graphics and image data. Currently, in terms of AI computing power, Nvidia is unrivaled, with no other company coming close.

How Can Investors Catch the Nvidia Train?

As one of the most watched companies in the global capital market, every move of Nvidia is closely monitored. Investors are beginning to feel lost, remembering the painful lessons of the 2000 tech bubble burst.

In reality, I believe that once you start investing, there is always a risk, and the market cycles through ups and downs; no stock market rises or falls forever. The question of whether a stock can be held for the long term covers a very broad area.

Looking ahead, Nvidia’s positioning is very promising, and the stock is likely to follow the company’s continued success. For those looking to catch the Nvidia train, I recommend buying Nvidia stocks through the BiyaPay App and holding them long-term. BiyaPay has been authorized by the U.S. SEC and also allows investing in Bitcoin, exchanging BTC and USDT for fiat currencies like the dollar and euro, and transferring funds to bank accounts or brokers like Charles Schwab and Interactive Brokers. Investors can monitor more stocks of interest regularly and buy or sell at the right time according to their investment strategies.

Will Nvidia Dominate the Future?

I believe that Nvidia’s dominance in the AI landscape will last for a long time. As other companies aggressively catch up with Nvidia, the day may come when its monopoly is broken. Nvidia’s monopoly in the AI chip market wasn’t built overnight, as mentioned earlier. Even when AI in image and voice recognition was stagnant in the early years, Nvidia’s graphics cards were already “far ahead.”

After all, lagging means getting hit. Currently, Nvidia is a real monopolist in the AI chip market. Its high chip prices are a significant obstacle for other companies trying to catch up. The official price for Nvidia’s H100 chip is thirty-five thousand dollars, ten times its cost, yet buyers are still lining up.

According to information from the chip research organization SemiAnalysis, OpenAI used 25,000 Nvidia A100 GPUs for over three months to develop the GPT-4 large model.

Sam Altman might have felt the financial pain during this costly venture…

Thus, maintaining a monopoly takes time, as does catching up. Nvidia’s dominance in the industry is expected to continue for a while. Until this situation is broken, Nvidia’s competitors can only accelerate their research and development of alternatives while living under Nvidia’s shadow.

It’s reported that from March 10th to 21st, Nvidia’s GTC conference will be held in the U.S., an annual major event of the company. CEO Jensen Huang said he would introduce new products and applications like the B100 and robots, and give significant forward-looking speeches, drawing widespread attention.

Investing in Nvidia is investing in the future AI era. With this logic, Nvidia seems to be worth any market value. As the demand for AI computing continues to rise, Nvidia is undoubtedly in its prime.

In the long run, Nvidia’s positioning is very strong, and the stock should follow the company’s ongoing success. The AI boom is a major driver for the rising stock market, and Nvidia is expected to continue outperforming the market in 2024!

Here’s to a joyful investment journey, good health, soaring stocks, and achieving financial freedom soon!