May 29, 2023
Traders and market watchers everywhere looked on in awe last week when tech giant Nvidia announced its earnings. Last Thursday, the stock jumped over 25% after the company announced a revenue forecast that was well above what analysts had been predicting for the company.
For the month ending in July, analysts were expecting revenue of ~$7 billion but Nvidia announced that number would be closer to $11 billion.
The rise in stock price brought the company to a market cap of ~$950 billion, putting it within striking distance of $1 trillion. This elevated it far above its competitors in the chip-making space.
Check out our latest free research reports for in depth analysis on specific market trends. View Reports
This was all done on the back of the increased need for extra computing power necessary to run language-generating tools like ChatGPT and other artificial intelligence applications.
It’s no secret that, since late last year, AI has been something of an arms race. The technology has a wide range of applications, from language models, to health care, to digital assistants, to defense and home safety. Everyone wants to carve out their own niche for the sake of profit.
Nvidia saw what was coming fairly early and positioned itself to be the kind of picks and shovels play that can truly make investors wealthy as the sector takes off.
Nvidia manufactures computer chips that can handle the immense processing demands of artificial intelligence. Its guidance so far has put it ahead of its competition as you can see. It remains to be seen whether Nvidia can maintain this momentum, but its current position as the frontrunner in AI chip-manufacturing means it will profit from its continued growth more than most others.
Right now, the industry is estimated to be worth in the neighborhood of $100 billion, but projections state that number is going to climb well past $1 trillion by 2030, just seven short years from now.
It is, without a doubt, one of the biggest growth industries going.
Check out our premium publications for more trading recommendations and exclusive coverage on the markets. View Publications
And even though the industry has come a long way in a relatively short amount of time, as you can see, it still has a long way to go.
It’s something we’ve talked about at length over at Profit Cycle Pro.
Artificial intelligence is one of the sectors we are following closely in our Macro Markers. We offer a research report, “The Rise of AI and What to Buy: Why These 3 Small AI Firms Are Getting So Much Attention from Microsoft’s ChatGPT, Apple, and Google,” that names three companies set to do well in the space. Nvidia is one, but you will need to become a member to learn about the other two.
We also talk about a company using AI to fight crime and increase public safety.
The company in question is a spinoff of tech giant Intel. Its technology integrates with existing security networks to provide facial recognition, weapon recognition, alerts, and a host of other tools to prevent crime.
It tested this system in a neighborhood in Mexico City. In just under a year, crime plummeted by 45%. Now it wants to bring that same AI-powered security to America’s streets.
Learn all of the details over at Profit Cycle Pro and see just one of the ways that you can profit from the AI boom.
Editor, Daily Profit Cycle