Why does Nvidia Stock make new all time high?

Who is Nvidia?

Nvidia has its fingers in some very profitable pies. It firstly came to prominence by creating industry-leading graphics processing units for computers, which has tied the company’s fortunes to those of the rapidly growing computer gaming industry. Nvidia is also known for its “system on a chip” units, powerful processors that major corporations like Amazon are already using in their data centers.

Why didn't the investors pay much for this stock before?

The sales to crypto miners, which have been known to rapidly reduce purchases when cryptocurrency prices fall. This unpredictability of crypto sales has weighed on Nvidia's profits -- and, in turn, its share price -- in the past, particularly when mining-related sales plunged. But the market saw the tech giant's gaming business as more durable and dependable. So the investors did not want to pay for the stocks before.

As we all know, a major overhang on Nvidia's shares abating as Bitcoin mining's impact on its business lessens in the coming quarters. And Nvidia’s next steps could be game-changers.

Facebook announced plans to substantially increase its capital spending for 2022 to build out its new products such as the metaverse. If Facebook spends substantially more, NVIDIA Corporation could potentially sell more chips to AI and machine learning. What's more, the company will be supplying the chip that drives the Nio ET7, the Chinese electric vehicle manufacturer’s first self-driving model, which is expected to be rolled out in early 2022. And the unveiling of its first central processing unit, intended for high-end computing, could allow Nvidia to steal market share from dominant processor manufacturers like Intel and AMD.

Above all, these are the reasons that the NVDA makes new all time high.

Another important thing: Nvidia GTC event coming up, with Ceo Jenson Huang giving the keynote presentation. 

“It’s fair to say that you can expect to hear product and technology announcements. From Jensen, you can expect to hear about new partnerships and lots of examples of actually implementing AI on the leading edge,” Estes said. “We’ll have a number of examples of lighthouse customers and end users and our ecosystem partners.”

Do you think it is a positive signal to NVDA?

Will Nvidia steal market shares from dominant processor manufacturers like Intel and AMD?

Hope to hear your ideas!

$NVIDIA Corp(NVDA)$ $Intel(INTC)$ $AMD(AMD)$ $Facebook(FB)$ $NIO Inc.(NIO)$ $Amazon.com(AMZN)$