The NIVDIA Money Machine Keeps Rolling

The next money-making frontier for NVIDIA is the cloud. The company’s new superfast HGX-2 chips are made to operate artificial intelligence (AI) in the cloud.
The potential market for the HGX-2 is vast because there were 390 web-scale data centers worldwide in December 2017, TechCrunch reported. That number increased by 90 to 390 in 2017 and it is expected to increase by around 100 again in 2018.
There are currently 24 hyperscale firms giant data-oriented companies like Alphabet (NASDAQ: GOOGL), Palintir, Tencent Holdings, IBM, etc. each of which operated around 16 data centers a piece, TechCrunch calculated. The average large datacenter contained around 5,000 servers.

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Does Artificial Intelligence Make Money at NVIDIA?

All the companies and governments planning to harness AI will need something to develop it on, and NVIDIA is selling technology that creates the AI.

All of this points to a classic value investing strategy, do not buy the high-profile brand that puts the products before the public. Buy the company that makes the tools they use. In the AI revolution is that company because it makes the infrastructure AI needs to operate on.

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