This chip stock just won a big Google contract and is carving out its niche in AI
CNBCMAY 2024
Nvidia Passes Microsoft as Most Valuable Public Company
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The Spin
Narrative A
Nvidia's large bet on AI has paid off. Sure, the company benefited from some luck — and it will face stiff competition moving forward — but it took foresight to expand from a video game-focused company to working with other industries, including car manufacturers, to eventually becoming the chip maker everyone in AI is turning to during this boom. Nvidia's high perch has been well-earned.
Narrative B
Nvidia seems to be doing everything right while being in the right spot at the right time. But in addition to an increase in competition that's right around the corner, Nvidia's popularity among investors has all the makings of a classic inflating bubble. Eventually, every bubble bursts, and in this case, investors and an entire industry could take a hit. We should slow down before identifying Nvidia as the most important company on the planet.