So, while Nvidia gets to ride the AI wave, it’s their GPU-powered deep learning that actually ignited modern AI in the first place, with their GPUs acting as the brains of computers, robots, and self-driving cars. As Jensen said in a keynote at the National Taiwan University in May, “ We risked everything to pursue deep learnings. The company’s chips broke through the AI community back in 2012 with AlexNet Neural Network, and it’s clear Nvidia made a massive bet on AI long before other companies did. Except, thanks to Jensen, being in this position was a decade in the making. You might be thinking that Nvidia won the lotto here by having GPU chips so perfectly suited for being the engine behind AI. Essentially, they are the ground for AI research. And they’re benefiting from this increased demand more than anybody else because Nvidia’s specialized chips can process large amounts of data more efficiently and cost-effectively than traditional semiconductors. While Google, Microsoft, Meta, OpenAI, Anthropic, and other AI players battle it out, Nvidia rakes in the cash because their chips power pretty much all of them. This ignited a race at various layers of the AI stack. Then along came ChatGPT, producing a tidal wave of interest in the AI sector, especially Generative AI. But, after the hype cycle, revenue fell as crypto crashed and the gaming industry slummed. In the past few years, Nvidia saw their first big growth surge with the crypto wave, where their computational hardware was essential for mining. With it, they also sparked the growth of the PC gaming market, redefined modern computer graphics, and revolutionized parallel computing allowing computers to do way more. Nvidia’s invention of the Graphical Processing Unit in 1999 pioneered one of the most significant developments in modern technology: GPU-accelerated computing. Now, just to tease what we’ll be getting much deeper into… I learned so much from studying him and Nvidia. He thinks, strategizes, and he humbly gets to work building for the future. He has a resume of making deep and accurate analyses of Nvidia’s competitive and macro environment, developing very clear and well-defined strategic visions, and addressing all potential strategic bottlenecks with policies and coherent actions that guide Nvidia forward.īut, there’s a good chance you’ve never heard his name until now because he doesn’t poke at other CEOs about cage-fighting, and he doesn’t get people all riled up. Jensen is a seismic wave-spotting genius, and arguably one of the best strategic executors I’ve come across. Jensen Huang-the Taiwanese-born, leather-jacket-rocking, and pimped-up-Toyota-Supra-driving founder and CEO of Nvidia-is a man who’s bet the entire future of Nvidia not once, but three times. I’ll summarize this 7K word deep dive for you in three words: a strategic masterclass. So, my curiosity sent me on a 30-hour researching and analyzing spree, going over everything I could get my hands on to bring you my armchair analysis of the world's 6th most valuable company. But I don’t need to tell you that with a 30-year-old company valued at $1.2 trillion-there’s more to the story. Of course, this growth has been because Nvidia is playing a huge role in this AI revolution. They also have $16B in cash/liquid assets. In their latest second-quarter earning report, their revenue was $13.51 billion, up 101% YoY and up 88% from Q1. And it’s not just a price run with nothing behind it.
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