Nvidia said Thursday it would invest $5 billion in Intel, throwing its heft behind the struggling chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company.The stake will instantly make Nvidia one of Intel’s largest shareholders, giving it roughly 4% of the company after new shares are issued to complete the deal. Nvidia’s support represents a new opening for Intel after years of turnaround efforts failed to pay off, and it ...

Core Insights - Nvidia has achieved a market value of $4 trillion, becoming the world's largest company, surpassing Apple and Microsoft [1][4] - The surge in Nvidia's market capitalization is attributed to its leadership in the artificial intelligence (AI) sector, particularly in designing highly sought-after graphics processing units (GPUs) [1][6] - Nvidia's revenue has significantly increased, exceeding $130 billion in the latest fiscal year, driven by strong demand for its AI chips and related products [6][7] Nvidia's Path to $4 Trillion - Nvidia's market capitalization rose from under $1 trillion in June 2023 to $4 trillion, marking a rapid ascent in the tech industry [4] - The company's dominance in AI has outpaced competitors like Apple and Microsoft, who are also involved in AI but have not benefited as significantly [6][7] Future Prospects - Nvidia's stock is currently trading around $171, with a potential to reach a market cap of $5 trillion, requiring a 20% increase in stock price [8][9] - The increase in market cap would raise Nvidia's trailing 12-month price-to-earnings ratio from approximately 55 to 66, which is considered reasonable for a high-quality growth stock [9] - Nvidia is expected to maintain its growth trajectory and could reach the $5 trillion milestone by 2025, supported by its ongoing innovations and annual GPU updates [7][11]

Nvidia (NVDA 0.53%) has demonstrated its ability to deliver major growth to investors, soaring 1,400% over the past five years. It's been a must-buy stock due to its leadership in a market set to reach into the trillions of dollars a few years from now; that's artificial intelligence (AI). This tech giant designs AI chips, known as graphics processing units (GPUs), that drive the most crucial of AI tasks, so they're key to the development and progress of this field. This has helped Nvidia's revenue skyrocke ...

Core Viewpoint - Nvidia's stock has recently declined due to concerns over tariffs and export restrictions, impacting its growth potential in the AI chip market [1][5][15] Group 1: Company Overview - Nvidia has established a strong position in the AI market, primarily through its powerful graphics processing units (GPUs) that are essential for AI tasks [3][4] - The company has experienced significant revenue growth, reaching record levels in the billions of dollars over the past few years [4] Group 2: Current Challenges - The uncertainty surrounding tariffs, particularly from the Trump administration, poses a risk to Nvidia and other tech companies, with potential new tariffs on electronics looming [2][5] - Nvidia faces additional challenges with U.S. government restrictions on chip exports to China, requiring a license for its H20 chips, which has led to a $5.5 billion charge related to inventory and purchase commitments [6][7] Group 3: Historical Resilience - Nvidia's CEO Jensen Huang has a history of proactive decision-making in response to challenges, such as securing chip supplies during the pandemic and adapting to initial chip restrictions by designing new compliant products [8][9][11] - Huang's strategic moves have historically resulted in positive outcomes for the company, including share price gains and expanded market reach [11][13] Group 4: Future Outlook - Despite current challenges, Nvidia remains a leader in the high-growth AI market, and there is optimism that Huang will find ways to mitigate the impact of export restrictions [16] - Sales to China accounted for 14% of Nvidia's data center revenue in the 2024 fiscal year, indicating the importance of this market for the company's earnings [15]