Nvidia Surges in 2016 Using Graphics Chips to Challenge Intel

Data Investing

Nvidia (NASDAQ:NVDA) makes graphics-chips and CEO Jen-Hsun Huang won over investors this year, including Paulina Sliwinska, fund manager at Edinburgh-based Baillie Gifford & Co., when she made the trip to Silicon Valley looking for the next big thing in technology. She found it — not in a hot startup run by a whiz kid just …

Nvidia (NASDAQ:NVDA) makes graphics-chips and CEO Jen-Hsun Huang won over investors this year, including Paulina Sliwinska, fund manager at Edinburgh-based Baillie Gifford & Co., when she made the trip to Silicon Valley looking for the next big thing in technology. She found it — not in a hot startup run by a whiz kid just out of Stanford, but in a 23-year-old semiconductor maker that’s had the same chief executive officer since its founding, with claims that his products, once confined to the niche of computer-gaming machines, are breaking out to become key components of nascent technologies from voice recognition to self-driving cars.
As quoted in the press release:

“He’s so engaging,” said Sliwinska. “Even from this point the opportunities in front of it over the next 10 years are astonishing.” After she met Huang in August, the fund added to its position and is now the 10th-largest holder. The company is the best performer on the Nasdaq 100 Stock Index this year, outpacing the No. 2 stock by a multiple of almost three.
Under Huang, Nvidia has built itself into the leading supplier of graphics processors, the chips that deliver the ever-more-realistic images that make computer games so immersive and addictive. For most of its history, that’s been a relatively small market, with the much bigger businesses of computer processors and smartphone chips dominated by Intel Corp. and Qualcomm Inc.

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