Nvidia, known for its GPU chips and data center services, also excels in artificial intelligence software. The company’s latest chips, the H100, A100, and Blackwell, are considered superior to competitors, leading to its soaring popularity in the stock market. Beyond GPUs and data centers, Nvidia’s revenue is divided into computing and networking as well as graphics. The computing and networking segment includes data center, robotics, and AI, with a significant increase in revenue year over year. CUDA, Nvidia’s platform for developers to write software applications that work with GPUs, plays a crucial role in the company’s success.
Nvidia holds a staggering 80% market share in AI-powered chips, highlighting the importance of CUDA in developing AI models like language models such as ChatGPT. This software service complements Nvidia’s hardware products and provides flexibility beyond semiconductors in a competitive chip market. Despite the company’s stock price surging and briefly becoming the world’s largest by market capitalization, Nvidia’s P/E ratio has actually decreased, making it potentially a more attractive investment option.
With a strong leadership position in the chip industry and the CUDA software business, Nvidia is poised for future growth in the AI landscape. Investors may consider adding to their positions or starting to build one for long-term gains. Although Nvidia stock is currently performing well, its prospects in AI development make it an appealing choice for investors looking towards the future.
Article Source
https://www.fool.com/investing/2024/06/23/surprise-nvidia-has-a-secret-business-outside-of/
