Risk, returns & timeframes illustration
5 min read
August 29, 2023
by
Belinda Nash

Nvidia’s 227% year-to-date stock ascent

Nvidia revolutionised the gaming industry in the 1990s by inventing ultra-fast graphics processing units. Decades later they’ve whooshed past Wall Street expectations with their tech innovation driving generative AI for Big Tech. Far from overnight success, Nvidia was a slow burn, rewarding investors who joined them on day one.
5 min read
August 29, 2023
by
Belinda Nash

Nvidia’s 227% year-to-date stock ascent

Nvidia revolutionised the gaming industry in the 1990s by inventing ultra-fast graphics processing units. Decades later they’ve whooshed past Wall Street expectations with their tech innovation driving generative AI for Big Tech. Far from overnight success, Nvidia was a slow burn, rewarding investors who joined them on day one.
5 min read
August 29, 2023
by
Belinda Nash

Nvidia’s 227% year-to-date stock ascent

Nvidia revolutionised the gaming industry in the 1990s by inventing ultra-fast graphics processing units. Decades later they’ve whooshed past Wall Street expectations with their tech innovation driving generative AI for Big Tech. Far from overnight success, Nvidia was a slow burn, rewarding investors who joined them on day one.
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
The Fry up logo with fried egg
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

Everyone’s talking about AI chipmaker Nvidia. Nvidia’s (NVDA) stock has soared 196% since August 2022 - growing more than 220% this year alone - and while all eyes are on what’s next for the tech innovator that began life in a Silicon Valley diner, the company’s forecasts indicate that these may not be flash-in-the-pan results. 

Nvidia co-founder, president and CEO Jensen Huang - whose own net worth at the helm of the tech titan for 30 years now places him 28th richest person on the planet - expects sales of their sought after processors to climb 170% this quarter, likely surpassing their projected US$16 billion - numbers that may place Nvidia on track to reach their forecast annual revenue of US$50 billion. This is five times greater than 2020 when crypto-mining started to inflate demand for GPUs, with net profit increased from 10% in 2022 to around 46% in the current third quarter.  

With clients Alphabet, Amazon, Meta and Microsoft boosting Nvidia’s data centre revenues, Nvidia’s gain hasn’t helped AMD (AMD) and Intel (INTC) with both companies’ stock falling 6% and 1% respectively since Wednesday. But has Nvidia’s success rubbed off on Taiwan Semiconductor Manufacturing Co (TSM - ADR), which manufactures the bulk of Nvidia’s orders? Morgan Stanley analysts estimate that TSMC’s revenue from AI semiconductors may grow 6% this year, and following Nvidia’s highly anticipated earnings report last Wednesday, Asia’s semiconductor stocks climbed. 

Nvidia’s parallel processing packs a punch. 🥊 Nvidia’s Hopper 100 GPU (H100), which retails for US$30,000, holds 80 billion transistors, which is a cool 13 million more than Apple’s next gen SoCs (systems on a chip) used in their most recent MacBook Pro. In March this year, Huang told CNBC he ‘hand-delivered’ his Hopper to ChatGPT-maker OpenAI, adding:

‘What makes Hopper really amazing is this new type of processing called transformer engine. The transformer engine is the T of GPT, generative pre-trained transformer. This is the world’s first computer designed to process transformers at enormous scale. So large language models are going to be much, much faster and much more cost effective.’

Chip-chip-chippin’ away ⛏️

Nvidia’s US$1.157 trillion mega cap was three decades in the making:

  • 1993:Scrappy underdog’ Nvidia - from  ‘invidia’, the Latin word for envy - was founded in California by a trio of engineers with an eye for the future, kicked off by building 3D gaming graphics
  • 1999: What proved a game changer - literally - Nvidia invented graphics processing units (GPUs) starting with GeForce 256, launched the Partner Network, and listed on the Nasdaq in January for US$12 at the peak of the dotcom bubble - investors who bought US$10,000 Nvidia stock then could be sitting on US$7,521,739 today
  • 2006: Alongside building parallel computing platform CUDA, Nvidia ensured their programming language was taught at more than 200 universities worldwide
  • 2012: Nvidia took a ‘whole company’ approach, launching modern AI, with every chip made ‘focused on artificial intelligence’, Huang revealed in his CNBC interview

Driving on the moon? 🌕 Generative AI might still be on training wheels, but that didn’t stop the world’s largest advertising agency, WPP, from ‘going all in’ with Nvidia this May, jumpstarting generative AI advertising. Yep, cars dusting it up on the moon might be coming to a screen near you any day now. 

Nvidia deflected August waves that struck the ‘magnificent seven’ 

The US summer vacay season sucked the tide out from the share markets, leaving six of the world’s biggest tech stocks - which comprise around 51% of the Nasdaq 100 Index (^NDX) - landing a bumpy ride this August, shooting the Index down 4%:

  • Amazon (AMZN): down 0.4% during the month
  • Alphabet (GOOGL, GOOG): down 1%
  • Apple (AAPL): down 8% 
  • Meta (META): down 9%
  • Microsoft (MSFT): down 3%
  • Tesla (TSLA): down 10.5%

And while spring might spell optimism for our Kiwi summer, it may yet be a nervous wait on Wall Street hoping the tide rushes in to eclipse the September Effect. 🌊

Belinda Nash
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore another series
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

7 min read
Apr 16, 2024

Geopolitical pressures wobble big bank’s outlook

Big banks have kicked off quarterly earnings season in the US markets, but JPMorgan CEO Jamie Dimon’s sobering shareholder letter sent the bank stocks tumbling sector-wide last week. But there is still investor optimism in the global financial powerhouses, with stock soars in the past six months that even rival some Big Tech.
Read more
8 min read
Apr 9, 2024

Disney survived a hostile takeover, what have we learned?

Disney beat Nelson Peltz in his battle for boardroom control, ending years of struggles that kicked off during Covid. Retired CEO Bob Iger returned to bring the legacy entertainer back from big losses, but he can’t stay forever. So what happened behind closed doors during the failed hostile takeover?
Read more
7 min read
Apr 3, 2024

Could AI steal your doctor’s job?

Using AI in healthcare may save billions of dollars and save lives. Researchers are developing AI treatments for everything, from cancer and infertility, to schizophrenia and Alzheimer’s. AI language models may even be helping to create new proteins. And Big Tech is all in.
Read more

Related news articles

More recent learn articles

No items found.

Recent news articles

More recent learn articles

7 min read
Apr 16, 2024

Geopolitical pressures wobble big bank’s outlook

Big banks have kicked off quarterly earnings season in the US markets, but JPMorgan CEO Jamie Dimon’s sobering shareholder letter sent the bank stocks tumbling sector-wide last week. But there is still investor optimism in the global financial powerhouses, with stock soars in the past six months that even rival some Big Tech.
Read more
8 min read
Apr 9, 2024

Disney survived a hostile takeover, what have we learned?

Disney beat Nelson Peltz in his battle for boardroom control, ending years of struggles that kicked off during Covid. Retired CEO Bob Iger returned to bring the legacy entertainer back from big losses, but he can’t stay forever. So what happened behind closed doors during the failed hostile takeover?
Read more
7 min read
Apr 3, 2024

Could AI steal your doctor’s job?

Using AI in healthcare may save billions of dollars and save lives. Researchers are developing AI treatments for everything, from cancer and infertility, to schizophrenia and Alzheimer’s. AI language models may even be helping to create new proteins. And Big Tech is all in.
Read more