NVIDIA Is Still A Buy
See that man in the picture? That’s Jensen Huang, CEO of Nvidia and a man who’s overseen his stock go from $23 to $188 in a mere 18 months. These guys have been killing it all year. They own the market for AI and Deep Learning applications with their $16k a pop GPUs, and are now taking over the market for chips in autonomous cars, opening up potential for big deals with car manufacturers and delivery service providers.
It is only a matter of time before driverless cars become mainstream. The infrastructure is already in place, all that’s left is reliable software to be coded in. If I had to guess, I would say within 5 years more than 50% of new cars off the production line will be fully autonomous, with Tesla at the forefront. In 25 years manually driven cars will be nothing more than a tale of the distant past, considered highly dangerous, and scowled upon by the general public.
As of now, NVDA has over 2 dozen companies lined up to test their technology in their upcoming fleets of robotaxis and driver-less delivery vehicles, some of which won’t even be built with steering wheels. Should those prove to be successful, they will be produced en masse, sending NVDA stock to a gazillion dollars, and fast.
Unrelated, I bought some AMZN calls today, 995 strike price, on the notion that trends that are working will keep working until they don’t. Right now tech is working and I expect more gains to be had in the near term.