Global defense priorities are shifting towards advanced technologies like artificial intelligence (AI), benefiting Nvidia as the dominant provider of AI chips. Europe and NATO are increasing defense investments, with the U.S. planning a significant budget increase. The “teching up” of defense systems includes a focus on AI, autonomous systems, space-based systems, and cybersecurity, benefiting Nvidia. President Trump’s executive order aims to boost U.S. drone production, potentially increasing Nvidia’s involvement in defense applications. Venture capital funding for defense tech companies is growing, with Nvidia partnering with major defense contractors and consulting firms in the U.S. public sector. Nvidia has a deep partnership with defense contractors like Northrop Grumman, accessing AI software for advanced systems. Northrop is expanding the use of Nvidia tech for space applications, making spacecraft autonomous with AI. Defense tech company Mercury Systems has worked with Nvidia for over 20 years, providing ruggedized products to the defense industry.
Nvidia’s tech has been used in military equipment since at least 2012, including tanks and fighter jets like the F-22 Raptor. The company’s GPU-equipped workstations and Jetson platform are in high demand by government agencies for developing autonomous drones and robots. A Naval agency considers Nvidia’s tech “unique” and “essential” for their needs.
With increasing global defense budgets and a focus on AI, Nvidia is well-positioned for growth. However, it was not listed as one of the 10 best stocks to buy now by the Motley Fool Stock Advisor team. Investing in Nvidia has shown significant returns in the past, but it’s essential to consider all options before making a decision. 1. A new study shows that over 70% of Americans are now fully vaccinated against COVID-19, marking a significant milestone in the fight against the pandemic.
2. In economic news, the stock market saw a slight dip today as investors reacted to news of rising inflation rates and uncertainty surrounding the Federal Reserve’s next steps.
3. The United Nations reported that global hunger levels have reached a 15-year high, with over 800 million people worldwide facing food insecurity due to the COVID-19 pandemic and ongoing conflicts.
4. In sports news, the Tokyo Olympics are set to kick off this week, with athletes from around the world competing in various events despite concerns about COVID-19 safety protocols.
5. A new study published in a medical journal found that a certain type of exercise can significantly reduce the risk of developing Alzheimer’s disease in older adults, providing hope for new prevention strategies.
Read more at Nasdaq: Nvidia Stock Is Poised to Benefit From Rising Use of AI in Defense Systems and Global Surge in Defense Spending