With its stock price up more than 250% over the past two years, NVIDIA Corp. (NVDA) looks ready to conquer the world. And a few new developments last week have brought it this much closer to doing just that. In today’s blog, I’ll reveal the announcements NVIDIA recently made that have investors oohing and ahhing over this high tech stock’s next steps.
For those of you who aren’t already familiar with it, NVIDIA is a leading computer graphics company, making graphic processing units (GPUs) for consumers and businesses. From video games to professional visualization, datacenter and automotive applications, NVIDIA’s graphics cards enhance the processing capability of its users’ computers.
Founded in 1993 and currently headquartered in Santa Clara, CA, NVIDIA’s products are used in gaming, enterprise, high performance and cloud computing, as well as automotive markets. The company sells its products primarily to original equipment manufacturers, original design manufacturers, system builders, motherboard manufacturers, add-in board manufacturers and retailers/distributors.
But what’s most interesting for us right now is at the GTC China conference in Beijing last week, NVIDIA revealed it’s taken another step to upgrade even more companies to its artificial intelligence GPU chips. In fact, the company will now supply artificial intelligence GPU hardware to three major Chinese companies: Alibaba, Baidu and Tencent Holdings. NVIDIA also noted this upgrade provides the Chinese companies with an incredible five times more performance than their current chips.
On top of these already exciting developments, other Chinese companies, including Lenovo Group, Inspur International and Huawei Investment & Holding Co., are making the switch to NVIDIA’s Voltage-based systems as well. These systems are used primarily in data centers. Furthermore, NVIDIA is partnering with JD.com, China’s second-largest online retail platform, to upgrade its delivery drone robots so that it can service even more areas in China.
On all this news, NVDA shares jumped nearly 5% in a single week. And that’s only part of the reason why NVIDIA maintains an A-rating in my Portfolio Grader tool. Some other reasons are its strong sales growth as well as solid operating margins and earnings growth. Not to mention a strong history of earnings surprises and analyst revisions.
But before you go rushing out to buy NVDA stock, remember Blue Chip Growth members get instant access to my exclusive buy below price. So, I urge you to consider joining that service before taking any action today. And you can always stay tuned in right here to this blog where I’ll continue revealing some of my favorite stocks anywhere on the market today.