U.S .. technology company Nvidia posted quarterly earnings this week, and despite low Wall Street expectations of the chip maker, the results did not disappoint.
Following the announcement after the market closed on Thursday, shares rose as much as 7% and the stock price is currently hovering around $ 160.
If you invested in Nvidia (NVDA) 10 years ago, you would have ended up a good profit. A $ 1,000 investment in 2009 would be worth nearly $ 13,000 as of August 16, 2019, for a total return of nearly 1,200%, according to CNBC estimates. In comparison, a $ 1
Since its launch in 1993, the technology company that specializes in manufacturing advanced graphic processors has become a major player in the gaming and artificial intelligence (AI) industry. Nvidia is in the middle of getting back to normal after channel inventory problems surfaced last year, and now, ahead of school hours, the company's chief financial officer, Colette Kress, told analysts on the earnings call Thursday to expect Nvidia's most important gaming business "to grow to achieve complete normalization "by the end of the current quarter.
For its fiscal second quarter, Nvidia reported earnings of $ 1.24 per share, against $ 1.15 expected by analysts. Revenues landed at $ 2.58 billion, against the $ 2.54 forecast. Gaming, the company's largest segment, reported sales of $ 1.31 billion, down 27% from the previous year, but just above estimates of $ 1.30 billion.
While Nvidia's shares have performed well over the years, each individual stock can over- or underperform and previous returns cannot predict future results.
CNBC: Nvidia share of August 16, 2019.
Looking ahead, Nvidia's future could go both ways, especially given how fast the technology is evolving. On Thursday, Nvidia CEO Jensen Huang told CNBC that he is currently not worried about companies like Google, Amazon, Facebook or Tesla becoming competitors, especially since these companies are Nvidia customers and Google is the only one he knows about to produce his own silicon in scale. .
Although Nvidia still dominates the data center market, experts say its competitors, like AMD, pose a threat. Jon Peddie, of Jon Peddie Research, told CNBC in an email that he believes AMD "has won some major engagements and will increase its stake" in the market by the end of 2020.
That said, there is hope that Nvidia's growth will continue given its long-term plans to integrate AI technology into self-driving cars.
In June, the company's share increased after it announced a partnership with Volvo. Nvidia also has partnerships with other major car manufacturers, such as Toyata and Audi.
If you are thinking about investing, experts often recommend starting with an index fund, which holds all stocks in an index, such as the S&P 500. Investor Warren Buffett agrees it's a smart idea to start with an index fund, in part  because they fluctuate with the market, making them less risky than individually selected stocks.
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Visiting audience around the Nvidia trade show at China Digital Entertainment Expo 2016, known as ChinaJoy, in Shanghai.
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