Compound share

Nvidia share price: is its 6.580% gain just the start?

Money, money, money

In Q3 results Last month, Nvidia reported record revenue of $ 7.1 billion, up 50% from the same quarter last year and 9% quarter-over-quarter. This allowed the company to pay quarterly dividends of over $ 100 million. This performance is largely due to its best ever results in games and data centers.

CEO Jensen Huang said, “Demand for Nvidia AI is booming, driven by the hyper-scale and scalability of the cloud, and expanding to adoption by more than 25,000 businesses. NVIDIA RTX has reinvented computer graphics. ‘ Additionally, “Omniverse was a major theme… (which) brings together NVIDIA’s expertise in AI, simulation, graphics and IT infrastructure. This is the tip of the iceberg of what’s to come.

But Nvidia will face stiff competition from competitors Intel and AMD. The shortage of microchips means the demand for skilled workers is higher than ever – and good news for employees, that means pay increases. Intel is expenses $ 2.4 billion next year in staff salaries, including $ 1 billion in cash and an additional $ 1.4 billion in stocks, to help “win the fierce battle for talent in the competitive marketplace. ‘today “. Its 110,000 employees will receive an average raise of $ 21,000 per year, and Nvidia will likely be forced to compete financially to recruit workers.

But as the microchip shortage continues, Huang Recount to investors that Nvidia had “assured a guaranteed supply, in very large quantities, including a rather spectacular quantity from the first foundry in the world”. Perhaps this is why UBS analyst Timothy Arcuri made Nvidia one of his “best choices‘for 2022.

While Arm’s takeover may be on hold for now, Nvidia’s share price may continue its uptrend until 2022.

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