Nvidia (NVDA), our top pick in Technology-Semiconductors, has long been well-known among technology investors but burst into new prominence as the key supplier of the CPU-based computing architecture behind ChatGPT. As the key supplier of “picks and shovels” in the generative AI gold rush, Nvidia has seen its revenue and profit soar, explains James Kelleher, senior analyst at Argus Research.
Nvidia’s blockbuster GPU Technology Conference (GTC) in March 2023 cemented the company’s leadership in the fast-developing world of generative AI. At GTC 2023 and subsequent events, Nvidia introduced multiple new and updated product iterations.
The newly launched the DGX H200 is its fastest AI supercomputer ever. These products and solutions span hardware (GPUs, CPUs, clusters, and supercomputers); multiple new software products and inference platforms; acceleration libraries; and new cloud services and AI foundations.
Based on the company’s amazing traction in AI, Nvidia is rapidly becoming the global number-one semiconductor company by revenue, after barely making the top 10 two years ago. NVDA is one the “Magnificent Seven” of AI beneficiaries that collectively comprise over 25% of S&P 500 market capitalization.
We recommend establishing or adding to positions in this preeminent vehicle for participation in the AI economy. We believe that most technology investors should own NVDA in the age of deep learning, AI, and GPU-driven applications acceleration levels.