COMPANIES EXPLAINED

1. History and Founding

NVIDIA Corporation was founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. It started as a graphics processing company focused on PC gaming.

The company became famous for revolutionizing graphics processing units (GPUs), launching the GeForce series, which powered gaming, AI, and data centers. Today, NVIDIA is at the center of AI, self-driving cars, and high-performance computing.

2. Sector and Industry

NVIDIA operates in multiple industries, including:

• Semiconductors – GPU & AI chips
• Gaming – GeForce graphics cards
• Artificial Intelligence (AI) – Data centers, AI research
• Automotive – Self-driving car technology
• Cloud Computing – NVIDIA AI cloud solutions

3. Revenue Streams – How NVIDIA Makes Money

a) Gaming (Largest Segment - ~40% of Revenue)

• GeForce RTX & GTX graphics cards
• Gaming laptops and desktops powered by NVIDIA
• Cloud gaming via GeForce NOW

b) Data Centers & AI (~40% of Revenue)

• GPUs for AI & Machine Learning (H100, A100 chips)
• NVIDIA AI cloud computing services

c) Automotive (~10% of Revenue)

• AI-powered self-driving tech (NVIDIA DRIVE)
• In-car infotainment systems

d) Professional Visualization (~10% of Revenue)

• AI & GPU solutions for businesses
• 3D rendering, simulations, creative work

4. Competitive Advantage & Strengths

• Market Leader in GPUs – NVIDIA dominates the graphics card industry.
• AI & Data Center Growth – NVIDIA’s AI GPUs are critical for AI applications.
• High Profit Margins – Strong demand for GPUs makes NVIDIA highly profitable.
• Strong R&D – NVIDIA invests billions in AI, gaming, and self-driving tech.

5. Risks & Challenges

• High Dependence on GPUs – Any slowdown in gaming could impact revenue.
• Competition from AMD & Intel – Rival chipmakers are increasing pressure.
• China Restrictions – U.S. export bans impact NVIDIA’s ability to sell AI chips in China.

6. Future Growth Opportunities

• AI Growth – AI applications like ChatGPT & machine learning drive NVIDIA’s growth.
• Self-Driving Cars – NVIDIA's automotive AI is expanding into autonomous driving.
• Cloud Computing & AI Chips – The cloud AI market is growing rapidly.

7. Conclusion – Why Investors Care

NVIDIA is a tech powerhouse that dominates GPUs, AI, and self-driving technologies. While it faces risks, its leadership in AI and strong financials make it a key player for the future.