AI specialist Nvidia invites you to the 2024 AI Summit: Will the success story continue?

Nvidia, a leading provider in the field of artificial intelligence, is on the verge of opening its 2024 AI Summit, which will commence on October 7. This event brings together prominent industry leaders to present future developments of this potentially groundbreaking technology. Investors are questioning whether now is a favorable time to engage with Nvidia. A look at the company's history could provide insights. Nvidia was once a close rival with Advanced Micro Devices (AMD) in the battle for supremacy in the gaming market. However, since the turning point in the AI sector at the end of 2022, Nvidia has gained the upper hand and can report higher profits than AMD's total revenues. This market position is due in no small part to controlling 90% of the extensive market for AI chips. Giants like Alphabet have invested heavily to avoid falling behind. CEO Sundar Pichai recently spoke of a drastically higher risk associated with underinvestment. While the lion’s share of investments in AI chips continues to focus on Nvidia, AMD and Intel show little sign of surpassing the performance of Nvidia’s offerings. Anticipation for the next chip generation is high, and the profits achieved enable Nvidia to continue investing massively in research and development. Over the past three years, Nvidia has organized an AI event each year, with the current one being held as a three-day in-person event for the first time. The previous summits noticeably stimulated stock price increases, leaving the question of whether this trend will continue. Although somewhat unsatisfying, a definitive prediction is not possible: two years is a short time frame for reliable conclusions, and despite a connection between the AI event and stock price increases, this does not necessarily imply causality. Rather, it is crucial to consider the long-term potential of Nvidia’s AI technologies. When contemplating a purchase of Nvidia shares, the following considerations should be taken into account: An investment strategy looks different and usually relies on an expanded portfolio of recommendations as well as regular updates from analysts. Conclusions drawn solely from the past are generally no guarantee of future stock movements.