A soaring performance on the stock market: Nvidia dominates the Dow Jones

In an eventful year, the Dow Jones Industrial Average reached remarkable heights, fueled by investor confidence in an improving economy. Investor hopes for a lower interest rate environment were fulfilled when the US Federal Reserve began cutting rates in the fall. Against this backdrop, growth stocks and large industrial companies experienced a robust upswing, with stocks from American Express to Caterpillar posting double-digit gains. However, one stock stands out this year and leads the list of Dow Jones performers: Nvidia. The technology company, which was recently added to the index, achieved a phenomenal price increase of 2,300% over the past five years and aims for an increase of around 170% this year. The brightest times may still lie ahead for this company, as a significant catalyst is currently taking effect and could significantly influence the quarterly results. As a market leader in Artificial Intelligence (AI), Nvidia now dominates 80% of the market for AI chips. The company's graphics cards, used by renowned customers such as Meta Platforms, Amazon, and Oracle, are indispensable for the performance of key AI tasks, such as model training and inference. Supported by a broad portfolio of related products and services, Nvidia has been able to record triple-digit growth rates in revenue and profit in numerous quarters. In the latest quarter, Nvidia's revenue exceeded $35 billion, far surpassing the annual results of the 2023 fiscal year. This impressive leadership position is based on Nvidia's ability to deliver the most powerful AI chips and continuously assert itself through innovation. In the dynamic world of AI, customers prefer to acquire the best available technologies and are willing to pay more and accept waiting times. A striking testimony to this demand was recently provided by Oracle co-founder Larry Ellison, who, along with Tesla chief Elon Musk, stated that they had "begged" Nvidia CEO Jensen Huang for more GPUs.