By Webster Tilton
iven the price of video games it would be an obvious tip to invest in one of the bigger, more successful game studios; or at least whatever holding company owns them. A somewhat less obvious tip would be to invest in the upstream support industry that makes the playing of such games possible.
Nvidia (NVDA) was the best performing stock in the S&B 500 during 2016 during the bitcoin mining craze. The stock went even higher in 2017 and it’s poised to go higher now. The bitcoin mining bonanza may be over but it awakened people to the usefulness of Nvidia’s semiconductors in arenas other than video gaming.
Nvidia is now taken much more seriously as a manufacturer of high end processing hardware and their products will be increasingly in demand by everyone from gamers, to bitcoin miners (yes, even still), to digital artists, scientific research, and even the automotive industry.
Any business that requires the quick processing of huge volumes of digital data will be someone that is interested in Nvidia’s product line. And they are well positioned to take advantage of this increased demand. Other sectors that can make use of Nvidia’s chips are intelligence, law enforcement, economics, cybersecurity and medicine.
As gaming becomes a bigger and bigger deal on smartphones, we may begin to see higher end phones boasting Nvidia graphics chips marketed to the well moneyed gaming crowd. The possibilities are limitless, and as more and more possibilities are discovered the value of the chip maker goes up and up and up. This is a stock you should seriously consider.