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While Apple and Intel have started to develop their own chips for personal computing and gaming, Nvidia maintains a massive upper hand at producing chips with the speed and capability to handle the next generation of data. Technology evolves exponentially, and so does the amount of data to be processed and stored. Pro: Data centers and artificial intelligence. "NVDA remains our best large-cap growth idea," says Truist analyst William Stein. In the future, expect this segment to drive growth as the company heads full throttle into supporting AI and virtual reality. In 2021, compute and networking revenue grew a whopping 109% year over year, knocking graphics' share of total revenue down from 70% to 59%. Nvidia's two major revenue segments are graphics - primarily its signature GPU chips for computers and gaming - and compute and networking - its technology for data centers, autonomous vehicles and AI. Along the way, net income soared from $631 million to $4.3 billion. Revenue from fiscal year 2021, which ended in January, topped $16.7 billion, up 52.7% from 2020 and up 263% from 2015. Pro: Consistent growth and increasing profitability.Įxcluding 2020, Nvidia has experienced positive revenue growth every year since 2015. Here are three pros and three cons of investing in NVDA to keep in mind. With such a run, investors might be wondering whether to come along for the ride or avoid the hype. In the past month, NVDA stock has soared more than 40%, as the company appears uniquely positioned to contribute to this uncharted technological future. Recently, eyes have been on the company as it attempts to power the future of technology - the metaverse, virtual reality, artificial intelligence and data centers. Today, Nvidia's graphics processing units, or GPUs, power and create the displays on the world's most iconic devices. In the early 2000s, it struck key deals to place its chips in Xboxes and PlayStations. Founded in 1993, Nvidia went public in 1999. (ticker: NVDA) designs and manufactures computer graphics processors and related computing technology.
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