Opinion: The Biggest Risk Facing Nvidia Stock, and How the Company Will Solve It

The semiconductor industry has always been cyclical, because whether it's computers, smartphones, or even data centers, consumers and businesses only upgrade their physical hardware once every few years. That means revenue comes in big waves, followed by lengthy troughs.Artificial intelligence (AI) recently changed that. Since 2023, spending on data center chips and components appears to be growing exponentially, as some of the world's biggest technology companies race to develop the most powerful AI software.Nvidia (NASDAQ: NVDA) has been the biggest beneficiary of that spending boom, because it supplies the most advanced data center graphics processors (GPUs) for developing AI. Nvidia is selling so many chips that it has become the second-largest company in the entire world, adding $3 trillion to its market capitalization over the last two years alone.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool