Nvidia Corporation (NVDA) Comes of Age

NVIDIA Corporation (NASDAQ:NVDA) is arguably the top-selling advanced graphics card maker in the world. In the old days, that meant that serious gamers would buy computers that ran NVDA stock’s graphic processors, as would graphic designers.

Nvidia Corporation (NVDA) Comes of Age
Source: via Nvidia

Now, the company has redefined its role into what it now terms visual computing.

What does that mean? Well, it means that anything that is based on numbers and algorithms — think graphs, charts, digital displays in cars, video, virtual reality, etc. — that is represented as something more visually understandable is the core of visual computing.

What it means as a business is significant because the world is becoming increasingly connected, and managing and integrating all those connections is becoming a bigger and bigger business. Maintaining and manipulating a Big Data project. Managing corporate servers. Optimizing office building energy resources.

And now it also means having a key role in the Internet of Things (IoT) as well as smart cars. These two markets alone represent hundreds of billions in potential revenue.

You see, back in the day, NVDA’s business was simply a specialized firm building graphics processing units (GPUs) for computers. That meant its business was dependent on those in the desktop and gaming sectors who were willing to pay a premium for its chip sets.

That also meant NVDA stock was more a commodity play than a specialty product. The stock bounced around but never really took off. It gained some momentum in the dotcom boom in 2000, but gave it all back. It started to rally again into 2008 and then collapsed again.

But in the past five years, NVDA has really begun to spread it wings. And its value is being recognized by the market. Its GPUs are now one of the most crucial aspects to the next generation of computing … even driving.

NVDA Stock and the Future of Cars

NVDA has developed its own self-driving car platform in recent years. After all, major car manufacturers like Volkswagen AG (ADR) (OTCMKTS:VLKAY) (Audi and Porsche), Honda Motor Co Ltd (ADR) (NYSE:HMC) (Acura) and BMW are working closely with NVDA to build out their cabins with the most advanced and accessible visual computing systems.

Recently Tesla Motors Inc (NASDAQ:TSLA) announced that it is going to use NVDA’s newest GPU for its next generation driverless car. And Chinese internet firm Baidu Inc (ADR) (NASDAQ:BIDU) announced at its recent world developers conference that it is working with NVDA to create a ‘cloud-to-car’ driverless car platform for the Chinese market.

Also in recent news is the fact that Microsoft Corporation (NASDAQ:MSFT) just launched its newest Surface desktop that is targeted to attract the next generation of users and compete directly with Apple Inc. (NASDAQ:AAPL). NVDA is powering the graphics for this effort.

Given all the news that has been moving around NVDA recently, it’s no surprise the stock is up 94% in the past six months. It’s proof of how undervalued the company is by the broader market.

Use this to your advantage and grab some of this major tech player while it’s still reasonable.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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