Vaibhav Jain, CFA, CMT’s Post

What to do if you missed Nvidia's 233% growth. 1️⃣ First, do not try to catch up with the "wind". The very question of how to make money on something that has already happened, and Nvidia has already grown, is not correct. Trying to catch up, we are likely to multiply our losses. For example, everyone knows that it is difficult to outperform the market over a long period of time, we have discussed this here and here. That's why there is a great tool to solve this issue - ETFs. But, over the past 10 years, the average dollar invested in ETFs grew by 6% annually, while these ETFs grew by 7.7% annually. It may not seem like much of a gap, but in 10 years, that lost 1.7% annually will "steal" 1/5 of your return. And here we consider various sectoral, bond, and risk-oriented funds, which by themselves perform worse than the broad market. And investors get results even worse than the funds, because they are subject to fears and FOMO (fear of missing out). That's why they buy funds en masse when their price rises and sell them en masse when the price falls. Because they think that the results of the previous month, quarter, year or decade somehow predict the same future, they do not. 2️⃣ Secondly, we do NOT get upset because of missed growth, if any. Nvidia grew at the beginning of a possible new economic revolution - AI. And in the history of the stock market during the advent of smartphones (see image), we see that "chips" are the first to grow, as they give a chance to try whether this revolution is possible. Next, the "infrastructure" grows, because if successful, it all has to be placed somewhere, updated .... That's why Amazon, Microsoft, Tesla, and others are trying to make their own server chips, because they expect demand for infrastructure and want to own it. And at the very end, with the best result, we see the growth of services. This is a new part of the economy that didn't exist before. ➡️ So growth is not lost, there will be opportunities, and progress is unstoppable. But trying to find a new Nvidia, trying to play on the fact that the "market" should return to the first wave of the cycle, or betting that it is far from over, is a risky approach. #nvidia #invest #investing #growth #etf #opportunities #stocks

🚀 NVIDIA's rising tide won't last. Here's why (with a key lesson for other founders!): 👇 NVIDIA's stock is up ~250% YTD, and it's not hard to see why. In the past 6 months there's been a huge surge in the demand for chips to drive AI systems, and NVIDIA is currently one of the only major chip designers creating these types of GPUs, which means they can charge effectively whatever price they want, driving their margins through the roof. However, the keyword in that last paragraph is 𝘾𝙐𝙍𝙍𝙀𝙉𝙏𝙇𝙔. The problem with being highly (and publicly) successful is that your competition sees opportunity, and as NVIDIA's competition pushes harder into GPUs to compete with NVIDIA in AI applications, margins and revenue growth at NVIDIA will almost certainly be driven down. 💡 What's their one hope to outpace the competition and keep feeding their cash cow? Spending on Research & Development ("R&D"). 𝙏𝙝𝙖𝙩'𝙨 𝙩𝙝𝙚 𝙧𝙚𝙖𝙨𝙤𝙣 𝙑𝘾𝙨 𝙖𝙣𝙙 𝙤𝙩𝙝𝙚𝙧 𝙜𝙧𝙤𝙬𝙩𝙝 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧 𝙚𝙭𝙥𝙚𝙘𝙩 𝙩𝙤 𝙨𝙚𝙚 20%+ 𝙤𝙛 𝙮𝙤𝙪𝙧 𝙧𝙚𝙫𝙚𝙣𝙪𝙚 𝙨𝙥𝙚𝙣𝙩 𝙤𝙣 𝙍&𝘿. 𝙎𝙤𝙡𝙪𝙩𝙞𝙤𝙣𝙨 𝙩𝙤 𝙘𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙞𝙣𝙜 𝙩𝙚𝙘𝙝 𝙥𝙧𝙤𝙗𝙡𝙚𝙢𝙨 𝙖𝙧𝙚 𝙚𝙭𝙩𝙧𝙚𝙢𝙚𝙡𝙮 𝙫𝙖𝙡𝙪𝙖𝙗𝙡𝙚, 𝙖𝙣𝙙 𝙫𝙖𝙡𝙪𝙚 𝙖𝙩𝙩𝙧𝙖𝙘𝙩𝙨 𝙘𝙤𝙢𝙥𝙚𝙩𝙞𝙩𝙞𝙤𝙣. 𝙎𝙤 𝙗𝙚𝙖𝙩 𝙩𝙝𝙚𝙢. 𝙄𝙣𝙫𝙚𝙨𝙩 𝙞𝙣 𝙍&𝘿.

📈 NVIDIA Snapshot: Worth more than Intel Business and AMD combined? 1/ Background: Remember our younger days when we used to assemble computers with NIVIDIA and AMD graphics cards that supported the new game releases? Fast forward to today, NVIDIA is the leader in fueling the rapid requirement for advanced computing, GANs and more. The next generation will likely create their own games just from using prompts on their PCs. 2/ Market cap: NVIDIA Corporation, NASDAQ: NVDA, has been growing into one of the most valuable companies in the world, with a valuation of around $2.5T, which is over INR200 Lakh CR (Yes, lakh crores, and 'T' as in Trillions) As of today NVIDIA stocks are worth more than Amazon, Google, Intel Corporation, and AMD. Only Apple and Microsoft are in competition to lead the race for most valuable companies in the world! 3/ How this compares vs startup landscape in India: Swiggy: $12.7B (1 Lakh Cr) Flipkart: $36B (3 Lakh Cr) Zomato: $19B (1.5 Lakh Cr) To put this into perspective, it would take more than 200 companies like Swiggy to catch-up with this number (and we are likely to see a lot of retail investors bet in their upcoming IPO this year) 4/ Final thoughts 💬 With the rapid growth of the semiconductor industry and the advent of Generative AI, do you think NVIDIA is an overvalued stock or has the potential to reach the #1 company worldwide in the near future? One thing is for sure - Artificial Intelligence is here to stay for this decade and beyond. #Product #Startup #India #Swiggy #Nvidia

First time in 22 years: NVIDIA worth more than Amazon again Nvidia's share price has only been moving in one direction for months, due to the AI boom. The graphics card manufacturer is now worth more than Amazon on the stock market again https://lnkd.in/eCZcAWSU -- 👋I’m Victoria, Senior Strategy Leader, & I love tech👩💻 I write thought leadership content on technology, digital transformation & cybersecurity Thank you for reading! If you enjoy my posts & want to see more... 🔔Follow me, ring it on my profile & hit subscribe+notify for my channels so you don’t miss the next one ❤️Hit like & comment to let me know what tech means for you as a leader & your business #technology #innovation #artificialintelligence #Nvidia

NVIDIA Shatters Records with Q4 and Fiscal 2024 Earnings 🤩👏💰 #NVIDIA's remarkable quarterly revenue of $22.1 billion represents a 22% increase from the third quarter and a 265% increase from the same period last year. This growth was propelled by a record quarterly #DataCenter revenue of $18.4 billion, which is up 27% from Q3 and up 409% from the previous year. The company's full-year revenue also saw a significant uptick, reaching $60.9 billion, a 126% increase from the previous fiscal year. The company's gross margin improved notably, reaching 76.0% in the fourth quarter, up from 74.0% in the third quarter and 63.3% from the previous year. This expansion in gross margin underscores NVIDIA's ability to not only increase sales but also to do so profitably, a key indicator of financial health for value #investors. Thanks to GuruFocus Research and Yahoo Finance for the full article with more background and insights via the link below 💡🙏👇 https://lnkd.in/eXE6AJwh #semiconductorindustry #semiconductormanufacturing #foundry #tscm #it #usa #taiwan #technology #tech #chips #artificialintelligencetechnology #artificialintelligence #aiot #ic #icdesign #gpu #computing #computer

While it is absolutely amazing to see this company soar and excite as a result of its mind bending innovation (look up how a fabless semiconductor designs semiconductors) 90% of all their semiconductor chips are made by one semiconductor foundry company. The TSMC in Taiwan. As a matter of fact TSMC produces 90% of the world’s most advanced semiconductor chips and just about 60% of all semiconductors. One company. Surely I am not the only one that sees this as a significant risk for a number of reasons. Think of all cellphones, computers, cars, fridges. Think healthcare, military, energy. Much of our modern existence leverages semiconductors. Hopefully we get to see some more competitors giving them some serious competition from other regions in the world like Groq and their LPU that will be manufactured in the US by Samsung. I hope we get more global diversification. The US has a massive semiconductor chip initiative that will include education. After the pandemic I am wary of so much semiconductor manufacturing concentrated in just two companies. The future of education is much more than learning for its own sake. That is a component of it, but the security we have to create such an environment to have the privilege of learning for its own sake should not be taken for granted. The immediate risk of AI is not essays, it’s supply chain. And a big component of that supply chain is human intelligence. The future of Education is directly connected to personal, national and regional security and prosperity. This is a far reaching example of why STEM education is critical and why unlocking Stranded Brilliance is an imperative. Thank you Linas Beliūnas for another brilliant share. #thefutureofeducation #thefutureofwork #prosperity #productivity #STEM #AI #nvidia #groq #samsung #intel #seniconductors #innovation #communitycolleges

The rise and fall of Microsoft and Intel offer a vital business strategy lesson, exemplified by Nvidia's current dominance as the world's most valuable public company. Nvidia's chips and graphics processing units have become increasingly valuable to tech giants like Microsoft, Meta, Amazon, and Alphabet. With Microsoft alone estimated to contribute 15% of Nvidia’s revenue and Nvidia controlling up to 95% of the AI chip market, the case study of these tech titans underscores the importance of adaptation and innovation for any Fortune 500 leader aiming to survive and thrive in the coming decade. #AIgrowth

🚀 𝐍𝐯𝐢𝐝𝐢𝐚'𝐬 𝐌𝐞𝐭𝐞𝐨𝐫𝐢𝐜 𝐑𝐢𝐬𝐞! 🚀 While reading the #newspaper, I came across the astonishing news that NVIDIA has recently become the #worlds_most_valuable_company, surpassing tech giants Apple and Microsoft. Here’s how they did it: 𝗕𝗿𝗶𝗲𝗳 𝗔𝗯𝗼𝘂𝘁 𝗡𝘃𝗶𝗱𝗶𝗮 #Founded: In 𝟭𝟵𝟵𝟯 #Founder: Jensen Huang 🧑💼 (Born in Taiwan, raised in the U.S.) #Origin: Started by making 𝗰𝗵𝗶𝗽𝘀 𝗳𝗼𝗿 𝘃𝗶𝗱𝗲𝗼 𝗴𝗮𝗺𝗲𝘀 🎮 𝗔𝗺𝗮𝘇𝗶𝗻𝗴 𝗙𝗮𝗰𝘁𝘀 👉$𝟭 𝗧𝗿𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝟭𝟮 𝗠𝗼𝗻𝘁𝗵𝘀: NVIDIA’s valuation jumped from $1 trillion to over $3 trillion in just #one_year! 🚀 👉 𝗔𝗜 𝗥𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻: The launch of #ChatGPT in late 2022 was a game-changer. Nvidia, supplying essential #AI_tools, saw its stock soar. 💡🤖 👉 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘂𝗰𝗰𝗲𝘀𝘀: Their #GPUs, like the #H100 and the upcoming #GB200, are in high demand, driving 𝗵𝘂𝗴𝗲 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 and 𝘀𝘁𝗿𝗼𝗻𝗴 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲.💵 👉 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗼𝗺𝗶𝗻𝗮𝗻𝗰𝗲: Nvidia holds a dominant #75% #gross_margin, outpacing competitors like Intel Corporation and AMD. 🥇 👉 𝗙𝘂𝘁𝘂𝗿𝗲 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: Despite fierce competition from other tech giants and new startups, Nvidia is poised to stay on top. 🛡️ 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗖𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻 NVIDIA: $𝟯.𝟯𝟰 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 🌟 Microsoft: $𝟯.𝟯�� 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 🏆 Apple: $𝟯.𝟮𝟳 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻🍏 Even with this incredible growth, #Nvidia's sales still trail behind #Microsoft and #Apple. But their 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗲𝗱𝗴𝗲 𝗶𝗻 𝗔𝗜 ensures they remain a powerhouse in the tech world. 🌐 #Nvidia #TechNews #AI #Innovation #BusinessGrowth #MarketLeadership #FinancialSuccess #StartupSuccess #JensenHuang #ArtificialIntelligence #MarketDominance #GPU #TechGiants #FutureTech #ValuationMilestone #StockMarket #NvidiaRise

#Innovation and a bit of luck in the form of a killer use case for NVIDIA #hardware in #machine learning applications. NVIDIA #invested in the #CUDA ecosystem which allows #software developers and #scientists to use Nvidia #GPUs for general purpose processing (an approach known as #GPGPU, General-Purpose computing on Graphics Processing Units). It all really came to fruition when machine learning applications found ways to use GPUs for their #calculations.

I recently came across a chart showing how Nvidia has surprisingly overtaken Intel, boasting a $1929 billion increase in market valuation in the space of just nine years 📈 🤑 . It left me speechless... 😱 This monumental shift offers profound lessons for businesses and individuals alike. Here's what we can take away👇 - Firstly, longevity is the cornerstone of business success. The key to triumph isn't just innovation, but persistently marching forward, year after year. - Secondly, periods of stagnation are not a sign of failure but a prelude to breakthrough growth. Just like a writer facing 'writer's block', businesses may experience periods of stagnation. However, these phases often precede major breakthroughs, serving as crucial times for reflection and strategy refinement, ultimately leading to significant growth and innovation. - Thirdly, success or failure is intricately tied to external factors. Strategic positioning to ride the next wave—or dodge the destructive ones—is crucial. - Intel's situation mirrors the fate of Blockbuster, which overlooked the rise of digital streaming led by Netflix. Their reluctance to innovate led to their downfall, showcasing the dangers of leader's complacency syndrome. - Lastly, market capitalization is merely a reflection of investor confidence and not the intrinsic value an enterprise delivers. In a world where change is the only constant, these lessons from Nvidia's rise remind us of the enduring principles of resilience, strategic foresight, and the relentless pursuit of innovation. 💪 Credit goes to James Eagle for this graph #BusinessStrategy #Innovation #Nvidia #Intel #MarketLeadership