Nvidia has rubbed off on India, and that is a warning
investors’ easy way to profit is to pile on to the `likes’ of companies that are successful in their area of business. Globally, the popular theme playing out these days is the chip, memory chip!
Nvidia’s rise to the top of the market capitalisation pile has brought in its share of enthusiasts and skeptics. Its eye-popping market value topping $3.3 trillion — towering above Microsoft, Apple and everything else from Walmart to Meta and Alphabet (Google) — is making investors search for the next Nvidia.
That’s a natural investor trait.
The growth of Nvidia is nothing short of a dream. It has prompted seasoned investors to draw parallel to Cisco Systems of the dotcom bubble that became the darling of investors in the internet age to see its valuations erode when earnings reality dawned.
To be sure, Nvidia, with its chips, is at the heart of the current technology revolution – Artificial Intelligence. Its chips are the most sought after by companies to turn mines of data into meaningful explanations to enhance businesses. That scramble for Nvidia’s chips led to the tripling of its revenue in the last quarter to $26 billion compared to a year earlier.
No wonder the stock has also tripled in value in the past 12 months, and a trillion-dollar value — equivalent of 7 (yes, 7!) HDFC Banks — was added in just about four months. Many investors have capitalised on the boom in US tech stocks, thanks to the mutual fund plans that invest in overseas companies.
But those who did not, appear to have caught on to a locally
