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Nvidia (NASDAQ:NVDA) has delivered a winning performance in the artificial intelligence (AI) market, becoming the world's biggest AI chip designer and generating record earnings well into the billions of dollars. In the latest quarter, revenue topped $96 billion, and net income reached $59 billion. The company recognized the AI opportunity early and made this market its focus. This clearly was a wise bet as it's turned out very well for Nvidia and the company's shareholders. The stock has soared 900% over five years.
But one element has weighed on the stock in recent months, and that is the general concern about a potential AI slowdown. Investors have worried that big tech companies are spending too much on a build-out, and that the revenue opportunity may fall short. Such a scenario would be terrible for Nvidia, considering that more than 90% of its total revenue comes from data center sales.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia and peers have spoken of strong demand, which should reassure investors at least somewhat. And now, an important message from Taiwan Semiconductor Manufacturing (NYSE:TSM) offers us even more very recent visibility on the situation. TSMC just delivered fantastic news for Nvidia shareholders. Let's check it out.