Is Nvidia Stock a Buy?
A boom in artificial intelligence (AI) last year highlighted Nvidia's (NASDAQ: NVDA) business, as its graphics processing units (GPUs) became the preferred hardware for developers worldwide. Increased interest in AI sent demand for the chips skyrocketing, with Nvidia well-positioned to supply its GPUs to the entire market. As a result, the company's stock and earnings soared in 2023, with its shares up 241% year over year.
Demand for the high-powered chips looks unlikely to dissipate in 2024. A Reuters report revealed on Jan. 11 that India data center company Yotta plans to purchase more AI GPUs from Nvidia worth $500 million, taking its total order book with the chipmaker to $1 billion.
Nvidia will have to contend with increased competition in the chip market this year as various rivals release their own AI GPUs. However, the industry is expanding rapidly, with the company's dominance unlikely to falter any time soon.
Source Fool.com
