These are heady days for Nvidia, and profitable ones for my retirement account.
I bought 100 shares of Nvidia about 5 years ago, which soon turned into 300. I sold one-third of them to get my money out, but the remaining shares are worth nearly $500 each.
Nvidia is the chief arms merchant to the cloud. Its GPUs are essential to AI applications. More important, so is its software. It’s the Nvidia software stack that keeps chip rivals like AMD and Intel from gaining traction.
I also own stock in Amazon.Com If you’re into AI, Amazon.com is the better opportunity.
While Nvidia is at the front-end of AI, Amazon is at the back end of it. It’s Amazon that will reap AI’s rewards, in its supply chain, in its warehouse operations, and in its media business. Imagine if you could speak to Alexa casually and get real answers.
Amazon’s AWS cloud still has one-third of the market. Its approach in AI is to offer a wide range of tools, rather than insist companies buy any particular one. This makes sense to me.
Amazon will also be an Nvidia competitor. Remember, Nvidia is only designing chips. It doesn’t own a foundry. Amazon can also design chips and understands that the key to cloud profits remains keeping costs down. The last thing it wants to do is become dependent on a single vendor.
Because it’s wary of becoming dependent on Nvidia, Amazon stock hasn’t been running the way Nvidia’s has. The word for this is opportunity.
I look for Nvidia to hit a peak soon. I look for Amazon’s value to keep rising.
