Nvidia, the US microchip manufacturer, sells GPUs – graphics processing units – that can be used in a wide variety of applications, including cloud computing, virtual reality, drones, factory automation, and the smart cities of the future. According to Jon Peddie Research, the company is the world leader when it comes to making graphics cards, boasting 66.3% market share in Q4 2017.
The gaming industry is growing fast, with the quality of the top titles rapidly improving, while the blockchain boom is also creating a wealth of opportunities for next-generation graphics. Even though most of Nvidia’s revenues come from the sales of GPUs to the gaming industry, it stands to profit handsomely from AI and deep learning technologies, supporting its share price for the foreseeable future.
The California-based company is one of the most important players in the sector, with solid returns last year and a stock price which outperformed the industry over the same period. Many factors now seem likely to sustain its growth momentum.
Nvidia products are key elements of many important trends in the technology and entertainment arenas, with machine learning and artificial intelligence, driverless cars, blockchain and cryptocurrencies, and smart homes among the areas of innovation that are set to dominate an increasingly connected world for decades to come.
The company’s most recent figures showed that during the last fiscal year, ending January 28th, revenues jumped 41% to USD 9.71 billion, while adjusted EPS reached USD 4.92 (an increase of 61%) and free cash flow increased by 94% to USD 2.91 billion.
Nvidia stock has gained more than 53% since May 2017 and traders are now wondering if there is still time to share in the company’s success.
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