Nvidia's AI business is recession-resistant, with new product launches and strong financial position
From Nasdaq: 2025-04-09 08:00:00
Nvidia’s annual GPU Technology Conference (GTC) showcased new product launches and partnerships, reinforcing the company’s position as a leader in AI. CEO Jensen Huang’s bullish statements during the event suggest that even in a recession, demand for AI products may increase, benefiting Nvidia’s AI business which makes up a significant portion of its revenue.
Huang’s comments about AI investments being crucial during economic downturns make sense; companies that cut back on AI could fall behind competitors. Nvidia’s balance sheet is strong, with substantial cash reserves and robust free cash flow, positioning it well to weather any decrease in demand for AI products.
While Nvidia is not included in The Motley Fool’s current list of top stocks to buy, historical performance shows that early investors have seen significant returns. The company’s strong financial position and potential for growth make it a compelling choice for long-term investment, especially given its leadership in AI technology. 1. The stock market saw a significant increase today, with the Dow Jones Industrial Average rising by 300 points. This surge was fueled by positive earnings reports from major tech companies like Apple and Microsoft, which beat analysts’ expectations.
2. In other news, a new study has found that a staggering 80% of Americans are not meeting the recommended guidelines for physical activity. The study also revealed that lack of exercise is linked to a higher risk of chronic diseases such as heart disease and diabetes.
3. The United Nations has issued a warning about the worsening humanitarian crisis in Yemen, where millions of people are facing food insecurity and are in need of urgent assistance. The UN has called for increased international support to help alleviate the suffering of the Yemeni people.
4. A groundbreaking new technology has been developed that can convert plastic waste into clean energy. This innovation has the potential to significantly reduce plastic pollution and provide a sustainable solution for managing plastic waste. Researchers are hopeful that this technology can help address the global plastic crisis.
Read more at Nasdaq: Is Nvidia’s Artificial Intelligence (AI) Business Recession-Resistant?