In recent years Nvidia has been a force to be reckoned with, becoming a leader trillion dollar semiconductor that specializes in manufacturing GPU's that have been in high demand from silicom valleys most elite firms to international companies wanting to develop extremely powerful artificial intelligence solutions and to create powerful computers,the company has been growing rapidly in recent years and if you were lucky enough like me and investmented in the company a few years back when it's market cap was still low and held onto NVDA stock till this day you have made one of the most lucrative investments of your life, Invested $60,000 into NVDA stock in 2018 when it's market cap was $81.43 Billion and today my NVDA stocks are worth $749,583.71 and while the AI boom was a great indication of Nvidia's future growth and dominance in AI solutions, the high-performance gaming market and even cryptocurrency but recently I've been contemplating selling all of my NVDA shares
Nvidia's GPUs power some of the most advanced applications in cloud computing, data centers, autonomous vehicles, robotics, and healthcare,the company’s CUDA platform enables developers to leverage its GPUs for parallel computing and deep learning, Nvidia also offers specialized products and platforms for AI, such as TensorRT, Jetson, Drive, and DGX.
Nvidia has a strong R&D capability, spending 7.3 billion U.S. dollars on research and development in its 2023 fiscal year2. The company invests heavily in developing new technologies and products that address the emerging needs of the market, for example Nvidia recently announced its next-generation GPU architecture, Ada Lovelace, which is expected to deliver significant performance improvements over the current Ampere architecture, Nvidia also announced its plans to enter the CPU market with its Grace ARM-based processor, which is designed for high-performance computing and AI workloads
The company generated 27 billion U.S. dollars in revenue in its 2023 fiscal year2, with 46% coming from Taiwan and China, 24% from the Americas, 21% from Europe, the Middle East, and Africa (EMEA), and 9% from the rest of Asia-Pacific2. The company’s revenue is also split among four segments: gaming (48%), data center (32%), professional visualization (9%), and automotive (3%)
Nvidia faces intense competition from other semiconductor companies that offer similar or alternative products and solutions, AMD is Nvidia’s main rival in the gaming GPU market, with its Radeon RX series of GPUs that challenge Nvidia’s GeForce RTX series in terms of price and performance. AMD also competes with Nvidia in the data center GPU market, with its Instinct MI series of GPUs that support AI and high-performance computing applications. Intel is another competitor that is planning to enter the discrete GPU market with its Xe series of GPUs, which will target both gaming and data center segments. Intel also dominates the CPU market, which Nvidia is trying to penetrate with its Grace processor. Broadcom is a competitor that offers networking chips and software that compete with Nvidia’s Mellanox and Cumulus products
And Nvidia faces regulatory hurdles and antitrust scrutiny for its proposed acquisition of ARM Holdings, a leading designer of CPU architectures. The deal, which was announced in September 2020 for 40 billion U.S. dollars, is still pending approval from various regulators around the world, including the U.S., the U.K., the E.U., and China, the deal has raised concerns among some of ARM’s customers and competitors, such as Qualcomm, Apple, Microsoft, Google, Samsung, Huawei, and Amazon, who fear that Nvidia might gain an unfair advantage or limit their access to ARM’s technology
The deal could also face political opposition due to national security and geopolitical issues
Nvidia faces supply chain challenges and component shortages that affect its ability to meet the demand for its products. The global semiconductor industry has been facing a supply crunch since 2020 due to various factors, such as the COVID-19 pandemic, trade tensions between the U.S. and China, increased demand from various sectors (such as automotive), natural disasters (such as floods), and production bottlenecks (such as power outages). As a result, Nvidia has been struggling to produce enough GPUs for its customers, leading to product shortages, price hikes, and customer dissatisfaction
So should I hold onto my shares or just sell them
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