This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Key Points
- Nvidia is a key supplier to data centers and AI developers.
- Owning shares can make you a better AI investor.
Nvidia (NASDAQ: NVDA) is currently the largest publicly traded corporation in the world, with a market cap of roughly $4.5 trillion. If you're dipping your toes into AI stocks, Nvidia should become a core holding for one reason.
Nvidia is at the center of the AI revolution
Nvidia is a promising stock to own in its own right. The company is the largest supplier of GPUs to the artificial intelligence (AI) industry. Through early investment and the clever integration of software suites like CUDA, Nvidia's products have become the foundation for nearly every AI application.
Investing $100 in Nvidia stock likely won't make you rich overnight. But it does have one surprising benefit: This one investment will help you learn about the entire AI landscape, giving you a greater ability to spot under-the-radar AI stocks that have significantly more long-term upside.
Nvidia sells its products to nearly every data center in the world. Developers crave Nvidia's GPUs so much that, at one point, its new chip deliveries were backlogged by 12 months. By owning Nvidia stock, you'll be monitoring its revenue sources, new customers, and potential deal flow. With a bit of money on the line, you'll become incentivized to track new segments and opportunities within the AI industry that you never previously paid attention to. You may even be able to spot the next Nvidia.
Put simply, owning Nvidia stock puts you in the driver's seat to get a better understanding of the rest of the AI industry. By following the company's movements and earnings announcements, you'll become a significantly better AI investor. All for just $100.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
