Nvidia stock reaches record high

13 February, 2024

2 mins

This American company is at the forefront of breakthrough AI technology.

What does it do?

Nvidia is an American multinational technology company, that invents the graphics processing unit and drives advances in AI, gaming, creative design, autonomous vehicles, and robotics.

Why are we invested?

When ChatGPT took the world by storm in late 2022, the market turned its attention to organisations developing Artificial Intelligence (AI) capabilities. This has driven Nvidia’s shares to record levels. Nvidia’s original focus was to excel at designing and building a type of computing processing unit superior at processing large problems quickly.

Yet increasingly, their technology has been recognised in large-scale computing worlds as the most energy efficient, especially where mind-boggling quantities of data need to be processed and stored in easy to-reach memory. As a result, Nvidia has carved out a market-leading position as the choice for large cloud infrastructure customers, using sophisticated hardware that makes tools, such as ChatGPT, a reality. With demand for their unique products skyrocketing, the datacentre business is expected to more than double in the 2024 financial year. Gross profit margins have also expanded into the 70+% region, generating significant free cash flow, supporting ongoing product research and development and large share buy backs.

Pathfinder Funds that include Nvidia
If you’d like exposure to this stock, we currently hold it in the following Pathfinder funds.

KiwiSaver Ethical Growth Fund

KiwiSaver Balanced Fund

KiwiSaver Conservative Fund

Ethical Growth Fund

Global Responsibility Fund