Nvidia has had a tough year. The gaming side is in a state of financial recovery due to a resurgence of interest in GPUs in computer games and also the data centre is expanding thanks to increased use cases outside of ChatGPT.
Prices increased because of Nvidia’s bigger role as the biggest supplier of A100 chips in this market.
The auto industry is doing very well and Nvidia’s stock price would benefit immensely from a lucrative partnership with Mercedes (https://blogs.nvidia.com/blog/2023/02/23/mercedes-benz-digitalization/). The company is one of the three major players in the semiconductor industry; a partnership with Mercedes would be a huge revenue generator.
There are some concerns that gaming will take a while to recover as well as the AI sector taking some time to show growth.
Taking everything into consideration my view is buy for the long term, what do people think?
Leave a Reply