Nvidia Stock: Bear vs. Bull
Nasdaq Nvidia (NASDAQ: NVDA) is one of the hottest stocks on the market: Find me another company that grew its revenue by over 100% year over year to more than $13.5 billion. The stock has responded in kind and is up roughly 230% this year.
That kind of performance is far from common in the stock market and leads to more questions than answers. So, if you're looking for guidance on what to do with the stock, take a look at the bear and bull cases for Nvidia.
The bull case: AI is having a huge effect on Nvidia's business
Artificial intelligence (AI) is the catalyst Nvidia has been waiting for. To create an AI model, massive amounts of data must be processed, which requires the most powerful computational devices available: graphics processing units (GPUs).
Nvidia makes the market's best GPUs, and when a company builds a data center to harness AI's capabilities, it doesn't buy just one GPU, but thousands of them to multiply its capabilities.
