Investing In Nvidia's Cloud AI Prospects Makes Sense

Nov. 08, 2022 10:10 PM ETNVIDIA Corporation (NVDA)AMD, SOXX4 Comments
Chetan Woodun profile picture
Chetan Woodun
5.89K Followers

Summary

  • Nvidia's new H100, which hyperscalers can deploy as part of their huge clouds can deliver six times the performance of the previous generation A100.
  • It also offers them better returns on investments which signifies faster adoption even by smaller cloud providers in the U.S., offsetting revenue shortfalls from Chinese hyperscalers crippled by export restrictions.
  • To be realistic, the competition also needs to be factored in, as well as supply chain issues with geopolitical tensions running high, as AI has now become the new battleground.
  • This is the reason why investors can also consider SOXX, as more industry verticals adopt intelligent processing to make sense of the vast amounts of data collected in real time.
  • Therefore, to take advantage of cloud AI as the next frontier of GPU-based computing, you can invest in Nvidia, or go for the ETF option through SOXX, but bear in mind that volatility reigns.

Semiconductor Maker Nvidia Reports Quarterly Earnings

Justin Sullivan

With U.S. export restrictions forbidding NVIDIA (NASDAQ:NVDA) to export some of its most advanced GPU chips like the A100 and the H100 chips to China, the company could lose $400 million. As a result of

Chart
Data by YCharts

seek

H100 GPU (www.nvidia.com)

www.siliconmotion.com/

Table built using data from (www.nvidia.com)

seek

Table Built using data from (www.seekingalpha.com)

seek

Table Built using data from (www.ishares.com)

seek

Table Built using data from (www.seekingalpha.com)

This article was written by

Chetan Woodun profile picture
5.89K Followers
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

Recommended For You

Comments (4)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.