For anyone that doesn't know, NVIDIA is the leading provider of graphics processing units (GPUs) that are used in a wide range of applications, including Artificial Intelligence (AI). With the growing demand for deep learning technology, NVIDIA has been well-positioned to benefit from the rise of AI given that it commands an 80% share of the artificial intelligence chip market.
The chart below shows just how meteoric the rise in Nvidia's share price has been since late 2022, when ChatGPT, the first AI chatbot, was first unleashed upon the world.
In 2024 alone, Nvidia's share price has risen 163%, which even takes into account the recent setback that I wrote about in last week's newsletter titled the Nvidia conundrum. In fact, according to research published by Morningstar, during the second quarter of 2024 only 10 companies fuelled the 4.3% rise in the S&P 500 while the other 490 companies declined in aggregate.
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