Artificial intelligence (AI) is one of the hottest industries for investors right now. Semiconductor darling and data center specialist Nvidia (NASDAQ: NVDA) is considered by many on Wall Street to be a lucrative opportunity for AI enthusiasts.
With shares of Nvidia up over 170% so far in 2024, some investors may think they’ve missed the boat.
Let’s take a look at what is going on at Nvidia, and assess if now is still a reasonable time to scoop up some shares.
Nvidia’s hot start to 2024
2023 marked a new age for the technology industry. Behemoths such as Microsoft, Alphabet, and Amazon all made a series of splashy investments revolving around AI applications.
Some of the bigger investments these tech giants made were buying AI-powered semiconductor chips, as well as ramping up data center services. Considering Nvidia has an estimated 80% share of the AI chip market, these moves by big tech undoubtedly served as a big boost to the company.
The strong momentum from last year’s AI euphoria carried into 2024, and Nvidia investors haven’t stopped buying up the stock. To put this into context, shares of Nvidia have increased almost 800% since January 2023.
This unprecedented run briefly catapulted Nvidia over Microsoft as the world’s most valuable company by market cap. Moreover, as shares continued to eclipse new heights, Nvidia’s management finally decided to implement a 10-for-1 stock split last month.
Image source: Getty Images.
Nvidia is more than just a chip opportunity
What’s incredible is that much of the narrative surrounding Nvidia deals with the company’s chip business. Indeed, its H100 and A100 graphics processing units (GPUs) are used by companies all around the world — including Meta Platforms and Tesla.
Moreover, Nvidia is continuing to lead the innovation front in the GPU realm with the introduction of its new Blackwell and Rubin chips.
With that said, it’s important to understand that Nvidia makes money from other products and services as well. In fact, one of its lesser-known growth opportunities is outside of hardware.
Nvidia’s compute unified device…
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