Nvidia: Innovation Engine of the AI Revolution Conquers the Markets

In recent years, Nvidia has established itself as a top performer in the S&P 500, impressing with a share price increase of 2,890% over five years. With two stock splits during this period—a 4:1 split in July 2021 and a 10:1 split in June 2024—the company has not only thrilled its shareholders but also strengthened analysts' confidence. Nvidia is renowned for its highly regarded graphics processing units (GPUs), which offer significant added value in the field of artificial intelligence (AI). These GPUs handle technical computations faster and more efficiently than conventional central processing units (CPUs), securing Nvidia a market share of over 80% in AI processors for data centers. The CUDA programming environment, introduced in 2006, has transformed GPUs into versatile high-performance processors and remains the benchmark for developers to this day. In addition to hardware, Nvidia has expanded its portfolio with software solutions such as AI Foundry and AI Enterprise, offering companies customized solutions for AI applications. CEO Jensen Huang recently announced with pride that the software sector is approaching $2 billion in revenue. Investments in new data center hardware further bolster Nvidia's leading role. The latest quarterly figures underscore Nvidia's success: a revenue increase of 122% to $30 billion and a profit surge of 152% surprised even the most optimistic forecasts. The introduction of the Blackwell GPUs in the upcoming fiscal year 2025 is expected to continue the path of success. Experts view Nvidia as a key factor for the future development of AI. Analysts are forecasting an annual earnings growth of 37%, which supports the current valuation. Patient investors can look to setbacks as opportunities to expand their position in Nvidia.