Nvidia, a tech firm, has been emerging as an AI A.I. But Cathie Wood, the head of Ark Invest, allegedly saw the potential back in 2014, according to the company's CEO.
back then it was just a sleepy old PC gaming chip company, but we saw it back then as an A.I. The famous investor, who is known as Kudlow, said on Thursday that the company would not be trading in the stock market for a long time. Now what we're seeing with Nvidia, this massive move today and since we bought it at $5 to today's almost $380, we are seeing the picks and shovels movement in the A.I. So Nvidia has done a lot of heavy lifting over the years, he said, and it is the No. In A.I., 1 hardware plays a role. While there are all the publicly traded companies heavily involved in A.I., it is not clear whether it will be the case for A.I. Despite being in a similar position, Nvidia has become a top player in the industry, having a diverse range of business offerings.
Nvidia stock has surged 113% year-to-date, outpacing some of the big names in tech and A.I. Google and Microsoft, which have enjoyed 30 percent increase in their share prices in the same period, are among a growing number of companies.
After the market closed Wednesday and Nvidia held its earnings call, its share price surged as much as 28% in after-hours trading to extend its dominance as the world s most valuable chipmaker and the fifth most valuable company on Wall Street.
Wood found that A.I. had a strong aptitude for mathematics. By 2030, hardware spending is projected to reach $1.7 trillion, while noting Nvidia's sales base is estimated to be $40 billion.
Because of the appreciation we have seen from Nvidia, thanks to ChatGPT, we really saw it take off after that, we believe that it will deliver a compound annual rate of return of roughly 15%, said Ark Invest's CEO and CIO. She added that the real play in artificial intelligence right now is actually on the software side.
With visionary leaders, great distribution, so broad distribution globally, and proprietary data, those companies are going to be some of the biggestbeneficiaries. The chief investee said that people have started to understand the productivity gains A.I. It has to offer, he said.
Nvidia has about 90% of the GPU market, which dominates A.I. training and, increasingly, inference. There will be competition, but there will be competition, particularly now that this market is on fire, Advanced Micro Devices certainly, the hyperscalers themselves, Meta platforms, Alphabet and Amazon, they are developing their own chips.