If you’re an investor and you’re not considering buying shares of Nvidia (NYSE: NVDA), you’re missing out. The tech company was founded back in 1993 and has become one of the leaders in tech and AI. They create general processing units and different interfaces to help with data science, an industry that’s exploding as we speak. The technology we have today can generate and store more data than ever before, making companies like Nvidia all the more important. While it’s true the stock is selling for close to $500 as of December 2023, it’s still a great investment for anyone to hold onto for the future.
One of the Best AI Stocks of the Future
It’s become abundantly more and more clear every day that AI is going to be the future of mankind, whether we like it or not. Nvidia is one of the leaders in AI technology and has it applicable to your everyday life. The general processing units they create are used for video games, one industry that isn’t going anywhere.
Businesses are using more and more analytics to make decisions, something that AI helps with. The large amounts of data that can be stored and properly shown thanks to Nvidia are going to be used by every business shortly. The first company to have these different models oftentimes becomes the most successful. Nvidia is the future of AI in our everyday lives.
The Gaming Sector Will Always Be Around
Parents may want their children to spend more time outside and less time looking at a screen. Unfortunately, it looks like this won’t be the case. These days, babies are given tablets to stay entertained and not cause scenes when out and about. This has translated to young children being used to looking at screens and playing games on a phone, tablet, or console.
Nvidia is one of the leaders in generating the graphics for different video games. Because of how early kids are being given a tablet to keep their attention, it’s fair to assume the gaming industry will only be growing. Children are going to be inside more and more, using these pieces of technology for fun. Nvidia will be there to create the games they play.
The Projected Growth is One of the Highest of Any Stock
As previously talked about, AI is the future for us. This has made Nvidia have one of the largest projected growths of any AI-based company in the future. Nvidia has already made leaps that many companies haven’t even thought of. By the start of 2025, Nvidia is projected to already be worth around $625 per share. In just five years, some estimates put the value of Nvidia close to $1,800 per share. The stock still has to perform and meet these expectations that have been laid out for it. But guess what? The stock has already shown a capability to meet and far exceed expectations.
The Stock Has Already Been Split, So It Might Again
If you know anything about investing, you know it’s an amazing sign for a company to split its shares up amongst investors. This helps people who might not have the $500 per share lying around easily invest in it. When companies do this, it drives interest and wants to be part of the company. The most notable company to do this is Google (NASDAQ: GOOGL), which has created many millionaires.
Nvidia is a company that’s already done this, with the most recent being in 2021. This shows that they care about the people investing and that they’re willing to do more than do it again. If the stock splits and you have it in your portfolio, you’ll become a wealthy person.
Nvidia Plans to Buy More Companies
One way companies grow their profit is by expanding and buying multiple companies to have under their umbrella. Nvidia has already started to look into doing this by trying to purchase Arm from SoftBank. Even though the deal fell through, Nvidia’s willingness to spread itself into new markets shows how forward-thinking they are. This can only mean more profits for the company which drives up the share price.
It’s unclear what else Nvidia might try to invest in, but it’s clear they want to have as many different profit avenues as they can. Nvidia is a great stock for anyone to own. It’s not a sure-fire thing, but it feels as close to that as you can get. By purchasing shares of Nvidia, or even partial shares, you’re investing in the future. That usually ends up working out in the long run.
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