What makes a stock worth investing in, especially in a rapidly evolving industry like AI? As a recent shareholder in NVIDIA, the AI chip maker making waves in the tech world, I’ve taken a closer look at why I decided to invest in this powerhouse. In this post, I’ll share six compelling reasons behind my decision. Before we dive in, a quick disclaimer: this is not investment advice but rather my personal insights. Always do your own research before making financial decisions. With that said, let’s explore the key factors that make NVIDIA a standout player in the AI landscape.
1. Founder-Led Company
The first reason I invested in NVIDIA is because it's still led by its founder, Jensen Huang. Now, a lot of companies have CEOs who come and go, but when a founder sticks around, it usually means they’re deeply committed. A founder isn’t just managing a business for a paycheck—they’re driven by a personal mission to see their company succeed. For them, it’s not just a job; it’s their life’s work.
Jensen Huang built NVIDIA from scratch, and his leadership goes beyond the usual corporate playbook. He has the vision, passion, and long-term commitment that only a founder can bring. When you have someone at the helm who cares that much and has the know-how to push boundaries, it gives the company a huge advantage. Competitors may have experienced leaders, but few can match the personal drive of a founder like Huang.
That’s why I see NVIDIA as more than just a well-run business—it’s a company with heart and a leader who’s in it for the long haul.
2. Jensen Huang: Visionary Investor
Another reason I bought NVIDIA is because Jensen Huang isn’t just a great CEO—he’s a smart investor. His ability to spot opportunities ahead of the curve is a major asset to the company, and as a shareholder, that matters.
One great example of this is Keyhole, a company NVIDIA invested in during the early 2000s. Keyhole was using NVIDIA’s technology to develop satellite imaging software but couldn’t raise any funding. Most people didn’t see the potential, but Jensen did. He thought it was a cool technology that could transform how we explore the world. Long story short, Keyhole was later acquired by Google and became Google Earth—one of the most downloaded apps ever.
Another example? NVIDIA recently invested in FIGURE, an AI robotics startup. This investment is a reflection of Huang’s ability to not only lead in AI but also back the right AI innovations. By investing in NVIDIA, I’m not just buying into their core business—I’m also getting exposure to other AI companies they invest in, giving me a broader stake in the future of AI.
3. Duopoly Market Led By Close Relatives
This next point might be a bit controversial, but stick with me. Here are three facts:
The AI chip market is dominated by two companies: NVIDIA and AMD.
NVIDIA’s founder and CEO, Jensen Huang, and AMD’s CEO, Lisa Su, are cousins.
In a duopoly, collaboration is often more profitable than competition.
Now, I’m not saying anything fishy is going on, but it’s something worth considering. Jensen and Lisa didn’t grow up together and only discovered they were related later in their careers. But the fact remains that two of the most powerful companies in AI chip manufacturing are run by close family members.
Now look at NVIDIA’s profit margins: In the first quarter of FY25, their operating profit margin hit 65%. Just a year earlier, it was around 30%. That’s an astronomical jump. In a market where two companies control most of the supply, it makes you wonder how long NVIDIA can maintain such high profit margins.
Food for thought.
4. AI Revolution: Just The Beginning
Another major reason I bought NVIDIA is that we’re still in the early days of the AI-driven industrial revolution. AI is being adopted at a rapid pace, and all those AI applications need one thing—chips to power them. As more businesses and industries jump on the AI bandwagon, demand for AI chips is going to skyrocket.
NVIDIA is the clear leader in this space, meaning they’re perfectly positioned to benefit from this growing demand. We’re at the beginning of something massive, and I believe NVIDIA will ride this wave of growth for years to come.
5. Leader in AI Technology
NVIDIA isn’t just leading in AI chips—they’re pushing the boundaries of what’s possible. AI models are getting more complex, and businesses need chips that can handle larger data sets and more demanding tasks. This is where NVIDIA excels. They’ve consistently developed cutting-edge, high-performance chips that meet the increasing needs of AI-driven industries.
As AI evolves, the demand for more powerful chips will only grow, and NVIDIA’s proven track record of innovation makes them the top choice to meet that demand.
6. AI Gold Rush: 'Shovel' Seller
Lastly, I bought NVIDIA because we’re in the middle of an AI gold rush, and NVIDIA is selling the shovels. In the gold rushes of the past, the people who made the most money weren’t the ones digging for gold—they were the ones selling the tools, like shovels.
In this case, NVIDIA’s AI chips are the “shovels” that everyone else in the AI industry needs. Startups and big companies alike are rushing to develop AI applications, and they all need NVIDIA’s technology to power them. By investing in NVIDIA, I’m betting on the company that’s enabling the AI revolution—not just riding it.
Bottom Line
So, there you have it—six reasons why I bought NVIDIA. This company isn’t just riding the AI wave; they’re leading it. With a visionary founder, smart investments, and a dominant position in the AI chip market, NVIDIA is well-positioned to shape the future of AI.
They may not be cheap right now, but as Warren Buffett once said, “It’s better to buy a great company at a fair price than a fair company at a great price.” For me, NVIDIA is that great company. It’s an investment in long-term growth, innovation, and leadership in the AI space.
What do you think? Is NVIDIA the best bet for the future of AI? Drop your thoughts in the comments!
Thanks for reading, and I’ll see you in the next post!
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