Nvidia: A Billion-Dollar Business Model with a Future

The dream of quick stock gains may be enticing, but lasting investment success requires a more differentiated strategy. Those who wish to secure their retirement should not rely on speculative one-off trades. The dangers of such approaches are evident in the example of Tesla, whose stock value dropped by 65 percent in 2022. A wise distribution, consistent investments, and holding shares of solid companies promise long-term prosperity. Nvidia exemplifies this principle impressively, a company that has excited investors with its remarkable development. At the beginning of 2023, Nvidia's stock price saw an increase of more than 800 percent, fueled by the growing interest in artificial intelligence (AI). Nvidia impresses not only with its forecasts but also with real results. The company's revenues have more than quadrupled in the past two years. This is largely thanks to Nvidia's leading GPUs, which are considered a benchmark in the tech industry. These GPUs are crucial for the development and monetization of generative AI models. A substantial profit is already tangible today: an investment value of $10,000 at the beginning of the year would be worth almost $92,000 today. Even though such extraordinary returns may remain unusual in the future, Nvidia continues to offer promising potential for long-term investors wishing to jump on the AI bandwagon. Despite the slight slowdown in growth, Nvidia looks optimistically to the future. The demand for the Blackwell AI accelerator architecture, which CEO Jensen Huang describes as "incredible," remains unbroken. With the introduction of the Rubin platform in 2026, the next phase of growth is already planned. Thanks to a powerful development environment, Nvidia also impresses with its CUDA software, which allows developers to expand applications on various GPU-supported systems, thereby strengthening customer loyalty to Nvidia.