My Pick for the AI Gaming Industry

There are plenty of ways that artificial intelligence (AI) is revolutionizing the way we live our lives. From self-driving cars to the Internet of Things (IoT), I’m sure you’ve read countless articles (including mine!) on the amazing human imitating technology that is changing the world as we know it.

But one area of the AI sphere that is often looked over is a fun one: gaming. AI not only improves gaming, but gaming is also a great way for AI to be improved by humans through a similar collective experience. Things like virtual reality (VR) and online games are constantly being adjusted by feedback from users, which, in turn, upgrades the AI algorithms that can not only improve gaming platforms – but can be more widely used across many platforms!

One company pioneering the AI gaming field is NVIDIA Corporation (NVDA). As I’ve discussed in previous Market360 articles, this fundamentally superior company got its start in the computer graphics business and has been leading the industry for more than two decades. It invented the GPU in 1999 – so it is a well-established player. Since 2014, the company has shifted its focus to five major markets – gaming, professional visualization, data centers, auto and AI.

This week NVDA made headlines for announcing a new flagship gaming processor. NVIDIA dominates the space for these Graphics Processing Units (GPUs), which are favored by gamers for their exceptional speed and graphic quality.

Its last GPU launch for the 3000 series debuted toward the end of last year and gamers seemed to love them. The launch sold out quickly and the models are being sold for three times the sales price, if they are being re-sold at all. This tells me that NVIDIA could stand to charge significantly more for the next line of units to earn higher margins.

Dedicated gamers fork over loads of cash for these processors because the gaming experience is virtually unmatched. The immersive aspect that NVDIA’s processers offer is unlike any other, and hard-core gamers are willing to pay any price for them.

NVDA uses a deep learning model for its GPUs, which process inputs into hidden layers and then uses this information to come up with a prediction. The company actually created its own deep learning model called DLSS to improve its hardware that attempts to fully replicate the way real light looks for videos and video games.

When you add DLSS to NVIDIA’s GPU, you get a light simulation that is virtually indistinguishable from real light. Updates in this AI tech is one reason behind the launch of the next 3000 series.

What’s truly amazing is that DLSS not only improves the way light appears in a video game, but the same mathematical approach also can be applied to many types of monotonous calculations needed for other AI models.

The AI software needed to create AI models, mixed with NVIDIA’s top of the line hardware GPU processers, puts the company lightyears ahead of any competition. And NVIDIA believes that the gaming industry is the just the first industry that its AI technology will revolutionize. With its AI technology expanding from manufacturing to telecommunication, it’s clear gaming is just the tip of the iceberg. After the release of the new GPU’s this week, NVDA was up around 2%, a nice follow-up from its 8.4% run last week thanks to its stunning first-quarter earnings report for fiscal year 2022.

The reality is AI is expected to be bigger than the tech boom in the 1990s and the smartphone revolution of 2007. It will allow us to build a whole new generation of incredible innovations.

In fact, Stephen Hawking predicted that AI would be the “biggest event in the history of our civilization,” and Google’s CEO called it “more important than electricity.”

And NVIDIA is perfectly positioned to benefit. It’s one of the reasons why I recommended the stock in Growth Investor back in May 2019. So, if you’d like to learn more about NVIDIA and why I like it, just sign up for my Growth Investor service. Once you do, you’ll have access to my special reports, including 3 Stocks Powering the $150 Trillion AI Boom, 3 Plays for the $12 Billion Battery Opportunity and The One AI Company Set to Corner the Booming Cybersecurity Industry.

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Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

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