Here’s How Artificial Intelligence Will Take Nvidia Stock to New Highs

Today is record day for the 4-for-1 stock split of shares of Nvidia (NASDAQ:NVDA) stock. If you’d purchased and held NVDA stock from my June 9 recommendation at $700 a share, you’d be sitting with a 6.42% gain and the promised of four times as many shares come mid July. 

A racecar featuring Drive PX 2 technology from Nvidia (NVDA) parked.
Source: Steve Lagreca / Shutterstock.com

NVDA stock hit $610 in February this year and dipped to $500 in March. It hit an all-time high of $721 on June 14 and closed Friday at $745 per share.

One cannot predict the stock movement after the split but Nvidia is one company that has the ability to scale and generate massive revenue in the coming months. The stock split will not have an impact on the fundamentals of the company.

Let us take a look at an important catalyst in the growth of Nvidia.

NVDA Stock Fueled by Faster Chips

The company’s graphics processing units have become the gold standard for gaming. There is an increase in the use of artificial intelligence which is increasing the demand for faster chips. The company strives to provide AI and data science solutions for every industry. 

Nvidia has entered the world of data centers with its GPU accelerators. The data center business exceeded sales of $2 billion for the first time and it is up 79% year over year. Data centers are an important aspect of various businesses and Nvidia unveiled a data processing unit bang in time.

This unit will replace the traditional CPUs. Additionally, the company also announced Grace, a CPU that is designed to pair with the GPUs and is built for applications including AI. This sector was previously dominated by Intel Corp. (NASDAQ:INTC) but Nvidia made the right moves at the right time. 

Nvidia is ahead of its time and it has already proved that the gaming industry is not the only one that will need AI technology. It is constantly expanding from manufacturing to electric vehicles and telecommunication.

When it comes to AI, there is ample opportunity for the company to grow and the sales are only going to increase in the coming quarters. We should expect higher contribution of the data centers towards the revenue of the company. 

Nvidia is not just a company that is known for GPUs, it has made strong moves into the world of cryptocurrency and has a lot more to offer on the business model.

Timely Expansion in the Autonomous Vehicle Industry

Nvidia recently announced the acquisition of DeepMap, a startup that builds maps for autonomous vehicles. This acquisition is made right in time when the world is moving to AVs. It will help Nvidia bring the best technology to the table. AVs offer higher precision and this acquisition will allow the company to scale across its AV fleets. 

NVIDIA Drive is an end-to-end platform that provides neural network training in the data center. With this acquisition, Nvidia will be able to offer the best mapping and localization capabilities on DRIVE and ensure that the vehicles are a notch better than the others in the industry. 

Nvidia’s Become a Forever-Hold Stock

Whether you are keen on the stock split or not, NVDA stock is one to hold forever. 

The stock might become attractive after the stock split and could attract more investors. The fundamentals of the company are strong and the future looks bright.

The company is ready to become one of the biggest tech companies in the near future. NVDA stock could hit new highs in the future and with its business model and offerings, the sky is the limit.

Buy NVDA stock and hold it forever. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.


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