Behind the "violent" growth of $英伟达 NVDA$ market value!
Due to the recent AI fever being promoted again, especially after the release of NVIDIA's financial report, it has soared to the sky, as if there is no bottleneck, so I also made up for the content about NVIDIA AI, and shared it here, which can be regarded as a porting work.
Let's take a look at the current situation of $NVDA stock:
Current stock price: 1150$
Market value: 2.84 trillion US dollars, ranking third in the list of the world's largest companies by market value, catching up with the second largest market value $AAPL Apple, with a gap of less than 10 billion. The gap from the world's largest market value Microsoft $MSFT is 3.2 trillion, with a gap of 360 billion.
Current price-earnings ratio: 66.75, which is at a relatively high level in the entire US stock market under the current economic conditions, and the price-earnings ratio of the seven technology giants is firmly at the top of the list. The high P/E ratio indicates that investors are optimistic about the future earnings of the stock, but it also indicates that the risk assessment of the stock is at a high level from another perspective.
Earnings per share: $17.27.
At the beginning of this year, technology giants such as Google, Intel, Samsung, ARM, Qualcomm and others jointly joined the Unified Acceleration Foundation, referred to as UXL. At the same time, Microsoft and Azure Cloud Enterprise also participated in it. The frequent joining of various technology elite companies may mean that a new round of "Android" alliance will be launched in the technology field. Who is the main opponent of the Android Alliance? It may be the "IOS" of the new era, NVIDIA.
Why do major technology companies want to fight against NVIDIA? Let's first look at UXL's grand goal - to establish an open source AI technology ecosystem to fight against NVIDIA's dominance.
In fact, when it comes to this, I don't want to discuss what this foundation can do in the future. Instead, I want to say that this point can prove NVIDIA's strong position in the field of AI, and this position does not only come from NVIDIA's hardware technology - chips, but from NVIDIA's core support - computing power ecosystem "CUDA".
CUDA - NVIDIA is an early GPU company. In order to facilitate the simplicity and convenience of language programming for programmers, it launched CUDA technology in 2006. CUDA is equivalent to a "translator" in the programmer field. No matter what language programmers use to write programs, CUDA can quickly translate it into a language that NVIDIA GUP can understand.
To put it bluntly, from the perspective of the supply side and the demand side, NVIDIA at that time used CUDA to change the demand side, that is, the multi-functional adaptation scenario of the GPU, without requiring any changes on the demand side.
In the following decade, NVIDIA gradually became the industry leader, and naturally the CUDA computing power ecosystem also became the industry standard. At present, this ecosystem has 4 million developers. In other words, some people can choose not to buy NVIDIA's chip hardware, but it seems that they cannot do without NVIDIA's CUDA ecosystem because it is too easy to use and has become a habit of use. The most important thing is that if a new ecosystem is developed, data migration and work difficulty will be greatly increased. For humans, there are simple and convenient choices. Why choose a more difficult one?
The core of the technology alliance to fight against NVIDIA is to master the CUDA ecosystem of many developers, which is not open source!
This means that the entire chip field and AI field are being led by CUDA, that is, NVIDIA, or NVIDIA's CUDA computing power ecosystem determines the development bottleneck of chips and AI in the short term.
At the same time, NVIDIA also relies on the fact that CUDA is not open source and is widely used in the field of science and technology, which means that no matter who breaks through the AI technology, it will drive NVIDIA's stock price.
It is because of the uniqueness and popularity of NVIDIA's CUDA that it is feared by other technology companies. Many technology companies have joined the UXL Technology Alliance and set a goal to release a new protocol and ecosystem by the end of the year, which is completely open source, trying to grab the computing power ecosystem market from NVIDIA.
Unfortunately, according to the evaluation of many people at present, this UXL Technology Alliance seems to be a mess, and it is hard to say what results it will eventually produce. Although it is said that "Android" did try to get a good market share from the IOS ecosystem under the premise of open source, it was not today, and IOS is not the current NVIDIA. We can only wait and see what the final result will be.
This is not to encourage everyone to buy NVIDIA stocks. This article itself is not an investment suggestion, but just a sharing to let everyone know what are the reasons behind the strong stock price of NVIDIA today. At the same time, we also remind everyone that based on the current economic situation and the status of the U.S. stock market, combined with Nvidia's own price-to-earnings ratio that is higher than the same environment, you must pay attention to risks and don't be too fomo.
