Nvidia (NASDAQ: NVDA) has proven itself to be an excellent investment in recent years — it’s soared 1,000% over the past five.
The artificial intelligence (AI) chip giant has been among the first companies to monetize its AI investments in a big way
This is because Nvidia’s chips are an essential tool for customers throughout their AI path — from the training of models to the actual use of the technology to address real problems. And this demand for chips has helped push Nvidia’s earnings to record levels. For example, in the latest full year, revenue rose 65% to $215 billion.
And net income climbed to $120 billion. Though rivals exist, customers flock to Nvidia because its chips — known as graphics processing units (GPUs) — offer the fastest speed around. Speed is an important advantage because it favors efficiency and allows a customer to bring its AI projects to commercialization sooner — and both of these elements may reduce total costs over time.