Is Nvidia Still a Millionaire-Maker?
Investors who got in on Nvidia (NASDAQ: NVDA) stock a few years ago have seen their returns multiply. The stock has climbed 700% over the past three years as the artificial intelligence (AI) revolution picked up momentum. Nvidia, as the world's No. 1 AI chip designer, plays a key role in the field, as its chips drive tasks that make AI happen -- such as the training and inference of models.
All of this has helped Nvidia's earnings growth story bloom, with revenue and profit increasing in the double and triple digits in recent quarters. Revenue has reached record levels -- in the latest full year, it surpassed $130 billion.
Meanwhile, Nvidia still has faced its share of headwinds. One is rivals, in the form of other chip designers such as Advanced Micro Devices as well as certain Nvidia customers that also make their own chips. The backdrop for AI stocks also is somewhat more difficult today than it was a couple of years ago, as investors have worried recently whether AI stocks may sustain high valuations and whether spending on AI will continue to soar.
Source Fool.com
