Nvidia (NVDA -2.13%) has continued to innovate year after year, and it still has plenty of opportunities ahead of it. In this Backstage Pass clip from "The AI/ML Show" recorded on Jan. 5, Motley Fool contributors Danny Vena and Toby Bordelon dive into the reasons this forward-thinking company seems to be so unstoppable.
Danny Vena: Nvidia is a compelling opportunity right now has to do with the fact that, first of all, we have all those opportunities that we talked about that are just on the edge of coming to fruition. But I want to share this chart for just a moment here. This is Nvidia's chart. Even after generating 50 percent year-over-year revenue growth, even after record results in the recent "techpocalypse," Nvidia shares are down more than 17 percent. That's not for any company-specific region. That's just that overall downdraft in stocks that maybe are a little bit pricey, a little bit frothy. Then Nvidia certainly could be perceived as that. However, there is one other chart I want to share here.
Again, we're going back to our friends at YCharts. Over the past year, even after that downdraft, Nvidia shares are up 110 percent, and you think, wow, how is that possible that they could continue that? Let's go to the three-year chart up 700 percent. Let's go to the five-year chart up almost 1,000, 10-year chart, 7,000 [laughs] percent and more. This is a company that has continued to execute. They just keep their nose down. They spend a lot of money on R&D. They continue to develop new products and bring new use cases to market, not only with the GPU, but with stacks of software and hardware combined, that answer questions like, how do I manage my cloud? How do I manage my data center? How do I use artificial intelligence? Nvidia has answers for all of those questions, and it's answering questions that businesses haven't even really thought to ask yet. That's why I'm really excited about Nvidia going into 2022. I think that we're going to continue to see Nvidia the business outperform. Even if the stock doesn't keep up immediately, it will eventually.
Toby Bordelon: Thank you, Danny. I think I like this company a lot, you talked about this. Jose, I think you were the one who discussed a little bit when we were talking about the brains of AI a couple of months ago. Talking about more of the details of their graphics cards. Danny, you touched on a lot of that. The power is so much, not just artificial intelligence, they power is so much out there. So many companies depend on Nvidia stuff, and could someone come in and compete with them, could disrupt them? Sure. There's so much expertise and so much continued development and innovation going on in this company will be a challenging thing to do I think.
