NVIDIA

GPUs are specialised processors originally designed to accelerate graphics rendering. They can process many pieces of data simultaneously, making them useful for machine learning, video editing, and gaming applications.

NVIDIA will benefit as more use cases emerge that require its robust graphics capabilities. The demands of gamers for minimal latency and realism will continue unabated and set a firm foundation for NVIDIA’s gaming business to sustain long-term growth.

NVIDIA’s opportunity in AI is still just beginning. Its capabilities underpin training Large Language Models (LLMs) used in generative AI (such as OpenAI’s ChatGPT), computational drug design, climate change simulation, speech recognition, automotive control systems, industrial automation, computer vision, and much more. It has the potential to grab its fair share of these opportunities by leveraging its scale, vision, and innovative culture, as well as by catering to the needs of developers with a thriving CUDA (Compute Unified Device Architecture) community. The markets it addresses are inestimably large, and NVIDIA is developing a systemically crucial role.

NVIDIA is founder-run like many Scottish Mortgage holdings. By all accounts, Jensen Huang, founder and CEO, is extremely important to the business. The company perpetuates a start-up culture despite now being over 20 years old.

The company showcased on this page is part of a diversified portfolio. The commentary should not be taken as advice on an individual stock.