11/05/2021
The market is full of discussions on the topic of "meta universe", and it can be said to be talked about.
In addition to large technology stocks such as Meta (formerly known as Facebook) and Microsoft, which hold high the banner, Nvidia (NASDAQ:NVDA) has also been sought after by market investors. Its stock price has more than doubled this year, and it soared 23% in October. After that, it rose by 16.56% this month and 12.04% overnight. As of Thursday, the US stock market closed at US$298.01 per share, with a market value of US$745 billion. The stock has also become the seventh largest component of the S&P 500 Index. Shares, surpassing Buffett’s Berkshire Hathaway.
(NVDA weekly chart from Yingwei Financial Investing.com) (NVDA weekly chart from Yingwei Financial Investing.com)
So, what is the relationship between Metaverse and Nvidia?
In fact, the CloudXR system launched by Nvidia is the key technology for the realization of the meta-universe concept.
Nvidia launched the CloudXR system as early as 2019. The purpose is to solve the inconvenience of previous VR devices using connection lines and the weak experience of independent VR. The 2.0 version launched by Huida can make the system even more popular with the popularization of 5G networks. When using a stand-alone device, both excellent image quality (resolution 3024x1680) and low latency (less than 20 milliseconds) are taken into consideration.
Moreover, with the support of cloud computing and mixed reality (XR) devices using Nvidia’s RTX graphics technology, users can enjoy a high-quality picture experience through 5G. In addition to Facebook’s Oculus devices, Microsoft, Google, and Amazon’s AWS and HTC's VIVE platform are all adopting this technology.
Wells Fargo recently pointed out that there will be considerable opportunities for the company in the context of the "meta universe" concept. Analyst Aaron Rakers wrote in the report that in the next five years, "Meta Universe" is expected to bring more than 10 billion U.S. dollars of opportunities to Nvidia. In the long run, with "digital assets" and "digital twins" The concept of "digital twins)" is more mature, and market opportunities may be greater.
And some media even bluntly said that if you don't have a GPU from Nvidia, you can't render any graphics of the long-awaited virtual Second Life. "This is the underlying logic of the meta universe."
Mario Stefanidis, vice president of research at Roundhill, said that companies like Nvidia are using their GPU capabilities to provide services to data centers around the world and provide support for high-intensity, high-running computing tasks. The company's technology will be the key to "Meta Universe". "Nvidia's CEO Jensen Huang predicts that GPU performance will double every two years, and these upgrades will promote significant growth of the meta-universe backbone."
In fact, Metaverse is only a small part of Invic’s long-term growth trend. With its technical strength, the company has developed in AI algorithms, data centers, cloud computing, and autonomous driving for many years. The company’s long-term efforts in these fields have, It is the key factor in the rise of its market value.
Nvidia's cloud GPU can directly and quickly process data visualization, which also allows cloud service providers such as AWS, Google, and IBM to give their customers more high-value-added services.
Nvidia's launch of DGX workstations is conducive to enterprise customers that can use AI artificial intelligence supercomputers without the need for comprehensive equipment upgrades, and use GPUs and related equipment to accelerate the efficiency of machine learning.
In addition, NVIDIA introduced AI supercomputers into robots and drones, strengthened the use of edge computing, and provided high-performance computing GPUs to meet the visual needs of industries such as construction, energy, and financial modeling. In the automotive field, NVIDIA also provides the DRIVE AGX platform to process a large amount of sensor data, and can smoothly train models and simulate road conditions.
The company's position in the GPU market is unbreakable. In the first quarter of this year, the company's GPU shipments accounted for 81% of the market, while AMD's market accounted for 19% during the same period, while Intel has not yet entered the market.
Investors' recent pursuit of Nvidia can be described as crazy.
According to data from Vanda Research, after the rise in U.S. stocks in October, the stock prices of high-end semiconductor companies such as Nvidia have soared, and investors are worried about "missing opportunities."
In an interview with the media, Josh Brown, CEO of investment agency Brown, even said that Nvidia's stock price will stand at $1 trillion. The aforementioned Wells Fargo analyst Aaron Rakers even raised Nvidia's target price from $245 to $320, which is more than 30% higher than the all-time high set on Thursday.
And the US stock fund Roundhill Ball Metaverse ETF (NYSE:META), which was just established this year, also holds a substantial share of Nvidia, accounting for the highest share of all shares, reaching 9.2%. The fund is 209 million US dollars in size.
