Feel Like You Missed the Nvidia Train? Think Again.
Artificial intelligence (AI) dominated financial headlines throughout 2023. While myriad companies are participating in the AI marathon, the "Magnificent Seven" stocks are setting the pace. Among this cohort of stocks, perhaps the biggest beneficiary from the AI boom is Nvidia (NASDAQ: NVDA). The company recently reported earnings for its third quarter of fiscal 2024, ended Oct. 29, handily beating its revenue guidance and setting a new record.
But even after its 240% stock return so far this year, there are plenty of reasons to believe the party is just getting started for Nvidia. Let's dig into the tailwinds pushing demand for the company's semiconductor chips and assess if now is a buying opportunity for long-term investors.
Nvidia specializes in the production of graphics processing units (GPUs). GPUs play a critical role in gaming, crypto mining, and AI. When it comes to AI use cases, GPU chips are designed to help power large language models (LLMs). This is important because LLMs are a core component of generative AI applications.
Source Fool.com
