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Analysis & Learning

The Huge New Trend Making Nvidia the No. 1 Growth Share

June 2, 2023

In a recent alert I said that subscribers need not be afraid of the obvious. Nvidia is AI. It is noticeable that many investors shy away from things that look too obvious. They want to find secrets, hidden truffles, that nobody has found yet.

I would like to do that too but often these secret gems just stay secret for ever and tie up cash for nothing. What I prefer to do is zero in on the obvious and really make a meal of it.

My favourite ‘obvious’ stock at the moment is Nvidia, which has been repeatedly recommended in Quentinvest in 2023 at rising prices and which I still believe has a serious claim to be the world’s most exciting investment.

Jensen Huang, the leather-jacketed, charismatic, co-founder and CEO of Nvidia has used the company’s invention of the GPU [graphical processing unit] in the early 1990s as the foundation to bet the whole company on accelerated computing and artificial intelligence.

In its newest iteration generative AI, exemplified by apps such as Chat GPT, requires incredibly fast computers and massive amounts of data. These fast computers, what Nvidia calls ‘accelerated computing’, are based on GPUs, thousands of them.

Nvidia is the King of Accelerated Computing

Accelerated computing is the use of specialized hardware to dramatically speed up work, often with parallel processing that bundles frequently occurring tasks. It offloads demanding work that can bog down CPUs, processors that typically execute tasks in serial fashion.

Born in the PC, accelerated computing came of age in supercomputers. It lives today in your smartphone and every cloud service. And now companies of every stripe are adopting it to transform their businesses with data.

Accelerated computers blend CPUs and other kinds of processors together as equals in an architecture sometimes called heterogeneous computing.

A Look Under the Hood of Nvidia

Nvidia Quadro K1200
Galati, Romania – November 20, 2016: Professional video card from NVIDIA – Nvidia Quadro K1200

GPUs are the most widely used accelerators. Data processing units (DPUs) are a rapidly emerging class that enable enhanced, accelerated networking. Each has a role to play along with the host CPU to create a unified, balanced system.


Look below at the chart of data in zetabytes generated and stored since 2010 (a zetabytye is a billion terabytes or a trillion gigabytes). The so-called zetabyte era began in 2010.

These numbers are absolutely insane! (as someone once said in a different context in a movie I can’t remember).

Tons of data and accelerated computing = AI

And this is what Bill Gates has described as the greatest revolution in technology since the invention of the Gutenberg Press in 1436. Printing was a slow burn in its transformation of human history but not so slow, think the Renaissance and the Enlightenment, which were all based on the dissemination of information made possible by printing.

Now, natural language computing is going to make computer programmers of everyone and usher in an era of self-learning computers. Ever greater computing speeds and accelerating accumulation of data are taking us into a world so brave and new that goodness knows what it all means.

Whatever, even if it is scary, this train has left the station and it ain’t coming back.

My favourite ‘obvious’ stock to invest in this revolution is Nvidia. Investors are looking under every stone to try to find the next Nvidia but how about thinking that Nvidia is the next Nvidia, the stock that is right in front of your nose.

There are other names in the space that look exciting and also dedicated ETFs (traded portfolios of shares/ index trackers). If you read Quentinvest you will find out about them too. The only real question is how big is this boom going to be. I think it could be HUGE!

Further reading

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