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Sunday, April 07, 2024 4:22:42 PM
Motley Fool
Here's the $4.7 Trillion Market Nvidia Has Its Eyes on Now
Keith Speights, The Motley Fool
Sun, Apr 7, 2024 at 2:30 PM EDT4 min read
In This Article:
Nvidia (NASDAQ: NVDA) could make the same statement attributed to Julius Caesar: "Veni, vidi, vici." The phrase translates into "I came, I saw, I conquered." The chipmaker has conquered quite a bit since its founding in 1993.
For years, Nvidia made most of its money in the gaming market. More recently, however, the company's growth has come largely from the deployment of its GPUs in data centers. What's the next frontier for Nvidia? Here's the $4.7 trillion market the chipmaker has its eyes on now.
Big moves in a big market
The U.S. spent an estimated $4.7 trillion on healthcare last year. That amounts to roughly 18% of the country's total economic output. Nvidia has recently made several major moves in this big market.
To be sure, healthcare isn't a brand-new focus for Nvidia. The company's technology has been used in healthcare before. For example, Nvidia launched its Clara AI platform for medical imaging in 2018. However, the company appears to have shifted its healthcare efforts into a higher gear.
Nvidia has announced multiple new healthcare collaborations and services over the last few weeks. On March 18, the company introduced a new suite of 25 "microservices" for healthcare organizations. This platform enables customers to integrate generative AI into existing applications.
At its 2024 GTC AI Conference in March, Nvidia announced two major milestones with healthcare giants Johnson & Johnson and GE Healthcare. It's working with Johnson & Johnson to use AI in surgical operations. GE Healthcare used Nvidia's technology to develop a model for analyzing ultrasound images.
How AI (and Nvidia) could transform healthcare
It's not an exaggeration to say that AI holds the potential to transform healthcare. How? Let's start with diagnosing diseases. AI has already shown tremendous promise in analyzing medical images, as GE Healthcare is doing with Nvidia's TensorRT software. The technology can help rapidly analyze test results, create personalized medical risk assessments for patients, and provide decision support for physicians.
Some biopharmaceutical companies use AI in their drug development process. In particular, AI can predict protein structures and analyze genetic sequences. Nvidia isn't just helping biotech companies on this front; it also invested $50 million in Recursion Pharmaceuticals, which uses AI for drug discovery.
AI can make medical technology devices more effective. That's what J&J hopes to do by using Nvidia's IGX edge computing platform and Holoscan edge AI platform to help develop new surgical devices.
One of the biggest complaints that U.S. healthcare professionals have is the amount of administrative work they must do. AI holds the potential to streamline a wide range of administrative tasks, including appointment scheduling, claims processing, and clinical documentation. This hasn't been a major area of focus for Nvidia so far, but it could present a big opportunity for the company.
Should you buy Nvidia stock because of its healthcare efforts?
Nvidia's ongoing expansion into the lucrative healthcare market could achieve tremendous success. However, I don't think these healthcare efforts by themselves justify buying the stock right now.
But what about the combination of Nvidia's healthcare initiatives and everything else the company is doing? Its overall growth prospects remain highly attractive. My chief concern with Nvidia is that its stock has such lofty expectations baked in that any hint of less-than-spectacular results could cause shares to fall hard.
Still, I think any pullback would present a great buying opportunity for this high-flying stock. And that's my view regardless of whether Nvidia conquers the healthcare market.
Recent NVDA News
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/19/2024 09:28:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/19/2024 08:33:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/18/2024 09:20:02 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 07/18/2024 09:17:13 PM
- Form SC 13G - Statement of Beneficial Ownership by Certain Investors • Edgar (US Regulatory) • 07/18/2024 09:15:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/18/2024 08:21:46 PM
- Nasdaq Tech Stocks Show Partial Recovery; Oil Prices Rise • IH Market News • 07/18/2024 10:01:11 AM
- Darden Acquires Chuy’s for $605M, BYND Drops 14% Amid Debt Restructuring, Petco Appoints Ex-Five Below CEO • IH Market News • 07/18/2024 09:59:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 08:59:50 PM
- U.S. Stocks Close On Mixed Note; Dow Rises To New High, Nasdaq Tumbles • IH Market News • 07/17/2024 08:41:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/17/2024 08:33:45 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/16/2024 09:00:50 PM
- Match Group Soars 8% Amid Potential Sale Pressure; Deutsche Bank Anticipates 2Q Loss, and More • IH Market News • 07/16/2024 10:10:09 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/15/2024 08:59:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/15/2024 08:59:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/15/2024 08:58:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/15/2024 08:46:24 PM
- Futures Pointing To Initial Strength On Wall Street • IH Market News • 07/15/2024 01:06:36 PM
- Alphabet Nears $23 Billion Wiz Acquisition, Trump Media Stock Soars 63% Pre-Market, and More • IH Market News • 07/15/2024 10:34:36 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/12/2024 09:13:07 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/12/2024 09:12:23 PM
- U.S. Stocks Move Back To The Upside Following Yesterday’s Downturn • IH Market News • 07/12/2024 08:44:00 PM
- Futures Pointing To Roughly Flat Open On Wall Street • IH Market News • 07/12/2024 01:08:02 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/11/2024 08:32:32 PM
- Nasdaq, S&P 500 Pull Back Sharply After Reaching New Record Highs On Inflation Data • IH Market News • 07/11/2024 08:31:05 PM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM
Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM