Followers | 680 |
Posts | 141228 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Sunday, January 12, 2020 11:30:23 AM
By: Motley Fool | January 11, 2020
• Artificial Intelligence and the Internet of Things are about to change your life.
From 2016 to 2018, NVIDIA (NASDAQ:NVDA) stock rallied as the success of cryptocurrencies increased demand for NVIDIA Graphic Processing Units, or GPUs. Then bitcoin lost value and demand for GPUs reversed, taking NVIDIA's stock price down with it.
With the crypto crash behind it, NVIDIA rose 81% in 2019, making it one of the year's best stock picks.
So will NVIDIA continue the run? And if so, what are the catalysts?
High Performance Computing supercharges the future
This is an exciting and pivotal time for NVIDIA. The company remains at the forefront of gaming, with advanced GPUs providing ever more fantastic gaming experiences.
But the next frontiers lie in data center, artificial intelligence (AI), and automotive applications. Key to success in running advanced applications is NVIDIA's High-Performance Computing (HPC) technology, which is based on GPU-accelerated computing. It aggregates computing power using parallel supercomputers to deliver higher performance in increasingly complex applications.
The HPC market is poised for dramatic growth, and NVIDIA is uniquely positioned to meet demand. The HPC-related market is expected to reach a value of almost $50 billion by 2025, from $35.8 billion in 2019. NVIDIA anticipated AI and HPC applications and built out platforms serving cloud, AI, and data analytics, among others.
Mellanox acquisition magnifies NVIDIA potential
In March of 2019, NVIDIA reached an agreement to acquire network equipment company Mellanox for $6.9 billion. According to NVIDIA, the acquisition unites "two of the world's leading companies in high performance computing (HPC). Together, NVIDIA's computing platform and Mellanox's interconnects power over 250 of the world's TOP500 supercomputers and have as customers every major cloud service provider and computer maker."
Closing the Mellanox deal has taken longer than expected due to trade war pressures with China. Chinese regulatory bodies delayed approving the deal in 2019, but with easing trade war tensions, approval is anticipated in early 2020.
NVIDIA has emerged from the dust of the cryptocurrency crash and is definitely on the right track. The company has a high forward P/E ratio of 56, but I consider the valuation justified in light of the fundamental development.
Competitive pressures heat up the chip market
NVIDIA's main competitor in the GPU sector is Advanced Micro Devices (NASDAQ:AMD), which sports a forward P/E ratio of 53. In 2019, Nvidia fought off Advanced Micro Devices in GPUs. At one point NVIDIA's market share dropped below 70%, but with the success of the RTX line the company regained much of the market share lost.
Competitive pressures from Advanced Micro Devices on both price and performance in GPUs will continue to challenge NVIDIA, but NVIDIA is well positioned to meet the challenge and prevail on its own terms.
NVIDIA is at the forefront of the Internet of Things (IoT). NVIDIA's EGX Edge Supercomputing Platform, a cloud-based product merging AI and 5G networks, is already allowing companies to harness rapidly streaming data for decision-making in everything from production to customer services.
The ecosystem build-out in HPC applications and platforms, combined with the Mellanox acquisition, are what will power NVIDIA forward and make NVIDIA -- over the long term -- a millionaire maker stock. Investors will be well rewarded for building positions in this tech pioneer.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent NVDA News
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- NVIDIA Sets Conference Call for First-Quarter Financial Results • GlobeNewswire Inc. • 05/01/2024 09:00:00 PM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- U.S. Index Futures Surge While Wall Street Eyes Rebound on Earnings Focus, Oil Prices Slip • IH Market News • 04/22/2024 12:09:47 PM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- Nasdaq, S&P 500 Extend Losing Streaks On Tech Weakness But Dow Advances • IH Market News • 04/19/2024 08:32:14 PM
- Traders May Make Another Attempt At Bargain Hunting • IH Market News • 04/18/2024 01:14:37 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- U.S. Stocks May Move Back To The Upside In Early Trading • IH Market News • 04/05/2024 01:10:21 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- U.S. Stocks Close Sharply Lower Following Late-Day Sell-Off • IH Market News • 04/04/2024 08:34:37 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- Tech Sector Weakness May Weigh On Wall Street • IH Market News • 03/25/2024 01:26:54 PM
- U.S. Stocks Close Mixed On The Day But Sharply Higher For The Week • IH Market News • 03/22/2024 08:40:00 PM
- Looming Fed Announcement May Lead To Choppy Trading On Wall Street • IH Market News • 03/20/2024 01:16:55 PM
- U.S. Index Futures Trade Sideways Amid Anticipation of Fed’s Policy Update; Oil Prices Dip • IH Market News • 03/20/2024 11:17:32 AM
- JPMorgan boosts dividends, Chipotle unveils 50:1 stock split, and Latest News • IH Market News • 03/20/2024 11:15:48 AM
- U.S. Stocks Show Notable Turnaround Amid Rebound By Nvidia • IH Market News • 03/19/2024 08:35:13 PM
- Futures Pointing To Initial Pullback On Wall Street • IH Market News • 03/19/2024 01:22:58 PM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM