Nobody knows what a stock will do tomorrow. Understandably, people typically hate buying when stocks go down it can feel painful and only worsen if the stock keeps falling after you buy. Semiconductors are the building blocks of technology, and the world will only need more as time goes on. What does all of this mean? The semiconductor market might hit the occasional bump, but Nvidia is still poised to grow over the years ahead. It's developed a full stack for AI, providing the GPU hardware, software, and developer tools for a turnkey system to create AI technologies on top of Nvidia's products. Nvidia could capture much of this industry growth and has built an extensive ecosystem to protect its market share. The company was the world's market leader in discrete GPUs (meaning dedicated GPUs instead of ones being built into the computer processor) at 83% in 2021. In no way was Nvidia a bust just because one. Nvidia's data center business ended fiscal 2022 on a $13 billion revenue pace, up from just $5 billion two years prior. However, since mid-2019, NVDA stock hasnt stopped climbing, from about 140 in June 2019 to more than 750 in July 2021 before a 4-for-1 stock split. Emerging technologies like autonomous vehicles, digital-world creation, and edge computing require computing power on site and in data centers to support the immense loads of information generated. Research firm McKinsey estimates that the global market for semiconductors could grow from $600 billion to $1 trillion by 2030.ĪI could play a big part in this demand. The long-term need for semiconductors figures to rise dramatically over time. You don't need to worry about the short-term ups and downs of the industry you can focus on the big picture. But this is where having a long-term time horizon can be an investor's superpower. It's possible that a recession does come, and Nvidia's growth will slow. It could provide a good look at how management expects the business to perform in the fall if the economy does slow down in the coming months. The fiscal 2023 first quarter ended May 1, so the second quarter will cover May through July investors will want to pay close attention to management's guidance for the next quarter. Nvidia guided for solid fiscal 2023 second-quarter performance, calling for $8.1 billion in revenue, a 24% year-over-year increase.
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