Nvidia was one of the biggest winners of 2021. The company designs and makes chips and graphic processing units (GPUs) which are critical components for gaming, and more and more AI and the metaverse. The share price was up almost 500% from the start of COVID to November 2021. However, since then it has fallen more than 60%.
Like so many Silicon Valley giants, 2022 has been tough. This article from Stratechery takes a look at how Nvidia got the past couple of quarters so wrong and what is coming next for the company.
Beyond the current challenges, there is plenty of megatrends working in Nvidia’s favour. The rise of AI and machine learning, crypto mining (although the recent Ethereum merge has softened demand), the coming metaverse and the continued strength of the gaming industry.
For a brief moment in 2021, Nvidia was being spoken about alongside the trillion dollar tech giants. We were trying to come up with a new FAANG acronym that included Tesla and Nvidia. So if you’re not too familiar with the company, it is worth getting your head around it. Because chances are, some of your devices may be powered by their hardware in the coming years.
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