11 Billion Reasons Why Nvidia Is the Top AI Stock to Own

Once upon a time, there was a company named Nvidia that was known for making high-performance graphics processing units (GPUs) used in gaming, professional visualization, data centers, and automotive applications. However, something magical happened in the last decade, which transformed Nvidia into a leader in artificial intelligence (AI).

"Our strategy is to focus on creating 'engines of innovation' for the markets that we serve: gaming, professional visualization, data center, and auto. We believe these markets will be large and growing, but also very demanding in terms of technology, innovation, and R&D investment. This is where we can contribute at the highest level." -- Jensen Huang, CEO of Nvidia

The journey of Nvidia in AI began in 2012 when the company released its first GPU-accelerated deep learning software development kit (SDK) called "CUDA Deep Neural Network library". This allowed researchers and developers to train and deploy neural networks much faster than before, resulting in breakthroughs in computer vision, natural language processing, robotics, and more.

Since then, Nvidia has expanded its AI portfolio with a range of hardware and software solutions, including:

• Tesla GPUs for training and inference
• Jetson platforms for edge computing
• TensorRT for optimizing deep learning inference
• CUDA Toolkit for parallel processing
• cuDNN for deep neural network acceleration
• AI frameworks such as TensorFlow, PyTorch, MXNet, and Caffe

All of these products and services have made Nvidia the go-to company for AI workloads across various industries, from healthcare and finance to manufacturing and transportation. As a result, Nvidia has become one of the most valuable semiconductor companies in the world, with a market capitalization of around $500 billion as of August 2021.

Here are some quantifiable examples of Nvidia's impact in AI:

• Nvidia GPUs powered the self-driving cars that won the DARPA Grand Challenge in 2005, 2007, and 2010, and continue to be used in autonomous vehicle development worldwide.
• Nvidia GPUs contributed to the breakthrough performance of AlphaGo, the AI program that defeated the world champion in the ancient Chinese game of Go.
• Nvidia GPUs helped accelerate the training of the GPT-3 language model, which has become one of the most advanced natural language processing systems.
• Nvidia GPUs enabled the development of the COVID-19 vaccine by accelerating the simulation of protein folding, a critical step in drug discovery.

These are just a few examples of how Nvidia's AI technologies have made a significant impact on the world. Moreover, Nvidia's partnerships with leading tech companies such as Google, Amazon, Microsoft, and Alibaba ensure that its AI solutions are integrated into the most popular platforms and services used by millions of people every day.

"Why Nvidia Is the Only AI Stock You Need in Your Portfolio"

The above title asserts that Nvidia is not just a top AI stock but the only one that investors need to own. This is because Nvidia's AI business is already generating billions of dollars in revenue and has tremendous growth potential in the coming years. Let's look at some figures to support this claim.

Nvidia's AI business generated $11.7 billion in revenue in the fiscal year 2021, which ended on January 31, 2021. This represents a year-over-year growth of 52%, driven by strong demand for data center products and gaming GPUs.

Moreover, Nvidia's CEO Jensen Huang expects the company's AI business to double in revenue in the next three years, reaching $23 billion by fiscal year 2024.

According to a report by MarketsandMarkets, the global AI market size is expected to grow from $58.3 billion in 2021 to $309.6 billion by 2026, at a compound annual growth rate (CAGR) of 39.7%. This indicates that Nvidia's AI business will be a major beneficiary of this trend, as it provides the essential hardware and software infrastructure for AI development and deployment.

1. Nvidia has transformed itself into a leader in AI by providing the essential hardware and software infrastructure for AI development and deployment.
2. Nvidia's AI business is already generating billions of dollars in revenue and has tremendous growth potential in the coming years, as the global AI market is expected to grow rapidly.
3. Nvidia's partnerships with leading tech companies ensure that its AI solutions are integrated into the most popular platforms and services used by millions of people every day.

In conclusion, Nvidia's AI business is not just a trendy buzzword but a real economic driver that creates value for its customers and shareholders. As such, Nvidia is the top AI stock to own and will likely remain so for the foreseeable future.

Disclaimer: The above article is not intended as investment advice but rather as an educational piece that showcases the potential of Nvidia's AI business.

References

• https://www.nvidia.com/en-us/about-nvidia/
• https://www.nvidia.com/content/dam/en-zz/Solutions/deep-learning/deep-learning-infrastructure-gpu-inference.pdf
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html

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