Third in the S&P 500, behind only Palantir (PLTR, Financials) and Vistra Corp., Nvidia Corp. (NVDA, Financials), a global leader in artificial intelligence and image processing technologies, had its stock increase an incredible 178%. This leap indicates that Nvidia’s AI-powered hardware and software solutions are much sought after in a fast changing tech environment.
Though Nvidia had an outstanding year, recently its pricing has been rather erratic. From its all-time high in November, the share price dropped 1.3% on December 30. Analysts claim this is a result of individuals profiting and growing concern about the state of the semiconductor business getting more challenging. Currently challenging their 21-day exponential moving average, Nvidia’s shares show a technical indication often seen as a potential support level.
Regarding the future, CEO Jensen Huang will discuss the “Rubin,” next-generation AI processor the business developed at the January 6 Consumer Electronics Show. With the presentation, Nvidia hopes to demonstrate that, in an area increasingly dependent on sophisticated networking technologies, artificial intelligence infrastructure is still under its leadership.
Following European Commission clearance of antitrust issues, Nvidia completed its $700 million acquisition of the Israeli artificial intelligence startup Run:ai. The purchase is supposed to increase Nvidia’s capacity to handle AI chores, therefore boosting its degree of competition. Run:ai has also indicated they want their software to be open source, therefore benefiting the artificial intelligence field overall.
This article first appeared on GuruFocus.
