Nvidia: Nvidia is still at the top!In the daily timeframe, Nudia stock is above EMA200 and EMA50 and is moving in its upward channel. In case of valid failure of the support range, we can see the downward trend of this share. On the other hand, within the demand zone, you can make purchases for investment purposes with a suitable risk reward.
The stocks of the seven tech giants, often referred to as the Magnificent 7, have grown approximately 30 times over the past decade—more than twice the growth seen in any previous market bubble. Notably, the term “Magnificent 7” was first coined by a Bank of America analyst in early 2023. Therefore, no one could have exclusively invested in these companies a decade ago, as this categorization didn’t exist at the time.
To compare this growth with other market indices, we can look at the Nasdaq 100 in the 1990s, which grew 12 times before the dot-com bubble burst.A significant part of this recent growth is attributed to the surging stock price of NVIDIA. The company has surpassed Apple to become the world’s largest by market value. Since 2019, NVIDIA’s stock has skyrocketed by 3,776%, creating unprecedented wealth among its employees:
• 78% of employees are now millionaires.
• Half of them possess assets worth over $25 million.
However, behind these massive payouts lies a relentless work culture. Employees have reported working seven-day weeks and shifts at 2 AM. The current challenge is motivating “semi-retired” employees whose wealth has diminished their engagement levels. Despite this, NVIDIA maintains an employee turnover rate of just 2.7%, compared to the industry average of 17.7%. The company also ranked second in Glassdoor’s “Best Places to Work” for 2024.
NVIDIA CEO Jensen Huang has stated that the performance of the company’s AI chips is advancing faster than the historical rates defined by Moore’s Law. Speaking at CES in Las Vegas to an audience of 10,000, Huang told TechCrunch, “Our systems are advancing much faster than Moore’s Law.”
Moore’s Law, introduced in 1965 by Intel co-founder Gordon Moore, predicted that the number of transistors on a chip would roughly double every year, effectively doubling the chip’s performance. This prediction held true for decades, driving rapid advancements and cost reductions, but the trend has slowed in recent years. However, Huang claims that NVIDIA’s AI chips are advancing at an even faster rate. He further announced that the company’s new data center superchip is over 30 times faster than its predecessor for AI inference tasks.
Huang added, “We can design the architecture, chip, system, libraries, and algorithms simultaneously. If you do that, you can move faster than Moore’s Law.”
He also revealed that MediaTek, a Taiwan-based semiconductor company and one of the largest producers of chipsets for mobile devices and other electronics, is now leveraging NVIDIA’s technology for its products. Huang praised MediaTek’s expertise in designing system-on-chip (SoC) solutions, stating that this collaboration could drive significant technological advancements and innovation.
At CES, Huang introduced new products and highlighted the emerging concept of “physical AI” as the next frontier in artificial intelligence. This domain includes humanoid robots and autonomous vehicles, both requiring advanced processing chips like those NVIDIA provides. Analysts predict that by 2050, there will be approximately 648 million humanoid robots worldwide, all relying on complex models to navigate the world.
To sustain its growth, NVIDIA is focusing on expanding into new addressable markets (TAMs) while increasing its share in the AI chip market. Huang noted that physical AI is reaching a transformative moment similar to what ChatGPT achieved.
