Monday saw Nvidia (NVDA, Financials) climb 3.6% to $139.60. Volatility caused by November’s 12% value loss in the stock reduced market capitalization by $400 billion.
The steady rises follow recent volatility, in which case the stock dropped 12% in value since November, thereby lowering market capitalization by $400 billion.
Notwithstanding these obstacles, Nvidia keeps on top of artificial intelligence technologies as its innovations in AI CPUs and GPUs attract a lot of investor attention. With 485,000 Hopper AI processors bought by Microsoft in 2024, Nvidia’s dominance in AI infrastructure is underlined, considerably beyond that of competing Meta’s purchases.
Expectation is also rising with Nvidia’s next-generation RTX 50-series GPUs set to show at CES 2025. These GPUs allegedly feature “Neural Rendering” technology, therefore transforming graphics processing.
Regulatory problems still exist; the U.S. Department of Commerce is investigating illicit Nvidia AI chip shipments to China. Moreover, by purchasing Run:AI Labs, a deal acknowledged by European authorities based on Israel, Nvidia has broadened its AI portfolio.
With manufacture planned out already, Nvidia’s Blackwell GPU, set for release in 2025, is probably going to drive significant growth ahead.
This article first appeared on GuruFocus.
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