AI Revolution: Nvidia’s Ambitious Plans for Global Growth

Investors can no longer overlook the significance of artificial intelligence (AI), as highlighted by the remarkable surge in Nvidia‘s (NASDAQ: NVDA) business performance and stock value.

Nvidia’s CEO, Jensen Huang, has introduced the concept of “sovereign AI,” shedding light on its potential impact on shareholders. Insights from his recent trip reveal how expansive this influence can truly be.

Image source: Getty Images.

Staggering Sales Growth

Nvidia’s financial growth this year has been nothing short of astounding. Over the past nine months, the company reported revenues of $91.2 billion, reflecting a robust 135% increase from $38.8 billion in the previous year. This figure surpasses sales from two years ago by more than four times.

This impressive growth is largely attributed to Nvidia’s data center division, driven by substantial investments from major tech firms eager to bolster their AI capabilities. Investors have taken notice, with Nvidia’s stock soaring 340% over the last three years.

Some analysts expect a slowdown in growth; however, Nvidia is currently facing capacity constraints while demand continues to rise. To maintain its competitive edge, the company plans to launch its Blackwell GPU architecture this year and has already begun unveiling its next generation platform, the Rubin system. Huang explained the company’s strategy: “Our company has a one-year rhythm… Build the entire data center scale, disaggregate and sell to [customers] parts on a one-year rhythm, and push everything to technology limits.”

Huang foresees a demand shift beyond just the largest tech companies, which is where the concept of sovereign AI becomes crucial. This vision has motivated Huang’s global expeditions in recent months.

AI: A Trillion Dollar Opportunity

During his recent trip to Southeast Asia, Huang met with Thailand’s Prime Minister to discuss how AI investments can foster national innovation. He emphasized the importance of local data, stating:

The most important part of artificial intelligence is the data. And the data of Thailand belongs to the Thai people. The digital data of Thailand encodes the knowledge, the history, the culture, the common sense of your people. It should be harvested by your people.

This principle holds true for numerous countries. A report from the International Data Corporation (IDC) indicates that AI could contribute nearly $19.9 trillion to the global economy by the end of this decade, potentially making up 3.5% of global GDP by 2030.

Nvidia’s Commitment to the Region

Nvidia is not merely observing this trend—it is actively shaping it. Huang announced plans to establish a new research and development (R&D) center in Vietnam focused on accelerating AI innovation. This center aims to partner with Vietnamese researchers, start-ups, and various businesses to enhance the country’s technology landscape.

Nvidia’s presence in Vietnam dates back eight years, during which the company has engaged with numerous AI start-ups and universities. Investors should closely follow Huang’s initiatives as they reflect a strategic roadmap for ongoing capital growth in AI, promising continued satisfaction for Nvidia shareholders in the future.

Seize the Opportunity

For those who feel they may have missed the opportunity to invest in top-performing stocks, now may be the ideal moment to act.

Occasionally, our team of analysts identifies “Double Down” stock recommendations for companies poised for significant growth. If you’re concerned about missing out, this could be your chance to invest before prices rise. The performance numbers are compelling:

• Nvidia: If you invested $1,000 when we recommended it in 2009, you’d have $359,936!*
• Apple: If you invested $1,000 in 2008, you’d have $46,730!*
• Netflix: If you invested $1,000 in 2004, you’d have $492,745!*

Right now, we are alerting investors to three remarkable companies, and this may be your last chance to get in on the action.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 9, 2024

Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.