Meet the 1 Thing That Could Keep Nvidia Ahead of Rivals
Nvidia (NASDAQ: NVDA) is playing a crucial role in the development of artificial intelligence (AI) today thanks to its top-performing graphics processing units (GPUs). These chips power some of the most important AI tasks like the training and inferencing of large language models (LLMs) so that these LLMs then can go on to solve complex problems.
And Nvidia has gone beyond this by developing entire AI systems, as well as services, so that the company can be a customer's one-stop shop for AI. Even better, the potential customer can easily access these offerings since they're available through all public-cloud providers. All of this has helped Nvidia's sales soar over the past few years, climbing in the triple digits to record levels quarter after quarter. In the most recent report, sales reached a record $26 billion. More than 85% of that was from Nvidia's data-center business. (Data center includes the company's AI products and services.)
All of this sounds great, but investors have worried about one thing: potential rivals. Competition is heating up as companies from Intel to Advanced Micro Devices launch new AI products and even suggest these products might outperform Nvidia's GPUs. Should you worry? Not necessarily. Instead, meet the one thing that could keep Nvidia ahead of the competition.
Source Fool.com
