Nvidia (NASDAQ:NVDA) holds a dominant position among U.S.-based artificial intelligence processor producers. Yet, some skeptics might wonder whether NVDA stock can move higher after a blistering 2023. We’re assigning the stock an “A” grade, however, as Nvidia plants its flag in potentially lucrative regional AI-chip markets.
It’s a natural evolution for Nvidia to seek new territories to conquer. After all, Nvidia already generates robust revenue from its AI-compatible processors in America. So, we encourage you to open your mind to the possibilities and consider how much improved Nvidia can be in 2024.
Nvidia Looks to Southeast Asia for Growth Opportunities
Where will Nvidia expand its geographic horizons in the coming year? Look to Southeast Asia for the company’s next opportunity to generate substantial revenue.
For instance, Reuters recently reported that Nvidia is discussing “cooperation deals on semiconductors with Vietnamese tech companies and authorities.” Nvidia President and CEO Jensen Huang affirmed that the company seeks to “boost the semiconductor industry” in Vietnam and establish “Nvidia’s potential partnership with Vietnamese tech firms.”
Furthermore, Vietnam isn’t the only largely untapped AI chip market that Nvidia is looking at now. Reportedly, Huang sees Malaysia as a potential AI “manufacturing” hub. Hence, it makes sense that Nvidia is partnering with YTL, a Malaysian conglomerate, to develop AI infrastructure in that country.
Per Reuters, YTL Power International indicated that the “first phase” of the collaboration is “expected to be operational by mid-2024.” Malaysian Prime Minister Anwar Ibrahim is evidently on board, as he sees the country as “a primary destination of choice in this region” for foreign technology-market investors.
Should NVDA Stock Investors Worry About China-U.S. Tensions?
It’s certainly possible that Nvidia is pursuing expansion into Southeast Asia in order to reduce the company’s reliance on revenue from China. After all, government-level Sino-U.S. tensions could make it difficult to operate in China.
On the other hand, there’s evidence that Nvidia isn’t giving up on China and can still tap into that country’s vast tech-component market. Reportedly, Huang is working with officials in the U.S. to develop AI chips that comply with American export restrictions to China.
“Nvidia has been working very closely with the U.S. government to create products that comply with its regulations, Huang said. “Our plan now is to continue to work with the government to come up with a new set of products that comply with the new regulations that have certain limits.”
In other words, when Nvidia faces an obstacle, the company will work diligently to find a workaround. Nvidia may have to develop less powerful AI chips to export to China, and if that’s the solution, then so be it.
Going forward, investors should keep tabs on new developments in U.S.-China relations. However, regardless of how the situation pans out, expect Nvidia to push forward with its expansion in Asia and elsewhere.
NVDA Stock: Why Not Stick With a Winner?
The critics had their reasons to doubt Nvidia all year long. Yet, if they bet against the company, they probably lost their shirts.
If you want to be on the winning side of the trade, investing in Nvidia makes a lot of sense. The company’s dominant position in the U.S. AI-chip industry means Nvidia can look elsewhere for opportunities.
Nvidia is taking steps to comply with U.S. trade restrictions so it can continue to operate in the Chinese market. Hence, NVDA stock earns a confident “A” grade and deserves your attention as a possible investment for 2024.
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.
