NVIDIA Corporation (NASDAQ:NVDA) Sees 54% Sales Increase

December 15, 2016

Portfolio Manager Thomas Vandeventer of Tocqueville Asset Management says NVIDIA Corporation (NASDAQ:NVDA), a semiconductor company that’s made its name in graphic processing, is making strides with its GPU chips, leading to a year-over-year sales increase of 54%.

We’ve owned the stock since the beginning of the year. We’ve been continuing to increase our position, and the story reminds me a bit of the position that Intel (NASDAQ:INTC) was in back when personal computing was really getting legs…The revolution is different, of course, but this company is in the leading and dominant position.

NVIDIA is almost an $11 billion market cap today. And the stock has done extraordinarily well this year, starting the year at $33 a share and closing today at around $86.

The story with NVIDIA is that the GPU chips it manufactures process robust amounts of data because of parallel processing. GPU’s time has come, as their processing approach is ideal in a world of expanding bandwidth and data requirements for everything from artificial intelligence to virtual reality to exploding video streaming and interpreting consumer needs.

Investors who know the name know that they have typically produced the leading graphics processing and rendering chips for games. What they may not know is that today NVIDIA is making great strides in autonomous driving and also in the visualization of not just animations but in virtual reality and artificial intelligence. They’ve just recently introduced a new chip for gaming, which led to an increase of sales of 54% year over year for the latest quarter. The Pascal GPU is actually 10 times faster than the prior previous-generation chip.

Thomas Vandeventer