From The Motley Fool: 2024-06-10 12:00:00

hit the road in significant numbers Nvidia is a leader in providing chips and software for autonomous vehicles. Revenue from its auto & robotics platform accounted for just 3% of its total revenue in its most recent quarter. However, the company is well-positioned to benefit from the expected significant growth in the autonomous vehicle market, which should drive revenue from this platform higher. 22. …and when Metaverse becomes more mainstream Nvidia is also well-positioned to benefit from the expected growth of the Metaverse, which is a collective virtual shared space, created by the convergence of physical and virtual worlds. In March, CEO Huang talked about how Nvidia’s platform technologies — AI, 5G, and XR (extended reality, which includes virtual reality, augmented reality, and mixed reality) — make it a Metaverse leader. 23. It’s investing for future growth Nvidia is investing heavily in many areas that should drive its future growth, including: research and development, which was $11 billion in fiscal 2023, up 48% year over year; capital expenditures, which were $3.3 billion, up 20% year over year; advancing its AI platform technologies; and expanding its business into adjacent markets. 24. It’s committed to innovation Nvidia is known for its innovation. In the past, this has included making the move from being primarily a provider of chips for the gaming market to a leading supplier of chips for AI and other markets. 25. It has a strong balance sheet Nvidia’s financial position is strong. The company had $10.3 billion in cash, cash equivalents, and marketable securities at the end of its most recent quarter, dwarfing its total debt of $256 million. Wall Street analysts will likely use cash flows rather than accounting profits to measure the success of its investments in driving growth.



Read more at The Motley Fool: 25 Reasons to Buy Nvidia Stock Now