Relentless Innovation Makes Nvidia Stock the Gift That Keeps On Giving

Chances are, you already recognize Nvidia (NASDAQ:NVDA) as a premier graphics-chip maker. It’s also possible that you own NVDA stock due to the company’s reputation as a leader in that particular niche market.

Nvidia (NVDA) logo on the indoor wall of a corporate building made of yellow tiles

Source: JHVEPhoto / Shutterstock.com

It’s perfectly fine to hold Nvidia shares for that reason. Yet, there’s more to the company than meets the eye, and other reasons to start or hold a position in the stock.

It’s undeniable that Nvidia founder and CEO Jensen Huang is a visionary in the technology space. Today, as 2021 heads into its final months, he’s looking beyond graphics cards and chips.

In fact, Huang is preparing the next chapters in Nvidia’s ongoing story. The future of this company will involve forays into multi-trillion-dollar industries — and with that, plenty of opportunities to generate revenues.

NVDA Stock at a Glance

We can only feel sorry for anyone who unwisely took a short position against Nvidia in 2021. NVDA stock started off the year at around $134, and perhaps some folks bet against it as the economic effects of Covid-19 still lingered. Yet, nothing could stop Nvidia from thriving and the share price from climbing.

Neither Covid-19 nor the global semiconductor shortage prevented people from buying up the stock this year. It was like an airplane taxiing down the runway, slowly at first but then lifting off into the skies. Amazingly, NVDA stock reached $150 in April, $200 in July and $300 just recently in November.

Now, just to be fair, I must acknowledge that Nvidia’s forward annual dividend yield of 0.05% isn’t anything to write home about.

On the other hand, it’s unlikely that the long-term shareholders are complaining at this point. The year-to-date returns in NVDA stock have been impressive, but this shouldn’t stop anyone from holding their positions, or even starting a new one.

After all, the buyers have all of the momentum and the sellers are in rough shape. Which team would you rather be on?

From Metaverse to Omniverse

By now, you should probably have heard about the metaverse, the immersive online world where non-fungible tokens (NFTs) and other digital inhabitants live.

Nvidia’s microchips and graphics processing units (GPUs) were already famous for powering self-driving cars and cloud gaming. Heading into 2022, however, it’s time for Nvidia to push the envelope once again, while creating new growth drivers.

Huang is preparing to deliver something above and beyond the metaverse. He’s calling it the Omniverse. With the Omniverse, “we now have the technology to create new 3D worlds or model our physical world,” Huang recently explained.

To put it simply, the Omniverse could be described as a platform for virtual world simulation and collaboration.

But really, that description would sell Huang’s vision short.

Applying the Tech to AI and More

The Omniverse provides the infrastructure, so to speak, upon which metaverses can be built.

There, the range of applications are practically endless.

“A constant theme you’ll see — how Omniverse is used to simulate digital twins of warehouses, plants and factories, of physical and biological systems, the 5G edge, robots, self-driving cars, and even avatars,” Huang clarified.

The company has even gone so far as to reveal the Omniverse Replicator. This is a synthetic-data-generation engine for training deep neural networks.

The Replicator can be used to help developers create the massive amounts of data needed to train artificial intelligence (AI).

So far, Nvidia has developed two Replicators. One is for general robotics, known as the Omniverse Replicator for Isaac Sim. The other is for autonomous vehicles, called the Omniverse Replicator for DRIVE Sim.

The Takeaway

Even after a terrific year so far, NVDA stock could still have plenty of fuel in the tank.

In other words, now is not the time to bet against the buyers. The rally has been powerful, and shows no signs of stopping.

Nvidia’s CEO, moreover, has a strong vision for transformative technology.

This promises to propel the company into the future with leading-edge products and, very likely, robust revenue streams.

On the date of publication, Louis Navellier had a long position in NVDA.  Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (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.

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