From Nasdaq: 2024-04-02 10:45:00

Investing for the long term requires a focus on fundamentals and big-picture trends. Nvidia (NASDAQ: NVDA) is lauded for its growth in AI chip market, with a market share estimated as high as 90%. The company is proactive in seeking out new opportunities and investing in smaller AI companies for future growth.

Nvidia’s success is rooted in its early lead in the AI chip market, with GPUs geared towards heavy workloads. The company anticipates potential competition and actively pursues opportunities, such as custom AI chip business with major tech companies like Microsoft and Amazon. Nvidia’s investments in upstart AI companies and partnerships showcase its commitment to innovation.

Nvidia’s financial position is robust, with over $27 billion in free cash flow and a cash balance exceeding $26 billion. Analysts project a revenue of $157 billion in 2027, translating to an annual free cash flow of around $70 billion. This financial strength bolsters Nvidia’s ability to navigate competition and drive future growth.

Looking ahead, industries like autonomous driving, humanoid robotics, electric aircraft, and space travel present significant growth opportunities. Nvidia’s AI chips could play a vital role in these industries, positioning the company for continued success in emerging sectors. Investing in companies with long-term growth potential is key to building a diversified portfolio for sustained returns.

The Motley Fool Stock Advisor team has identified the best stocks for investors, excluding Nvidia. Investors are encouraged to explore these recommendations for potential high returns. The Stock Advisor service provides guidance on portfolio building, analyst updates, and monthly stock picks, outperforming the S&P 500 since 2002. Consider these insights before investing in Nvidia or other long-term growth stocks.



Read more at Nasdaq: Here Is My Top Artificial Intelligence Stock to Buy and Hold for Decades