Article said that Taiwan's Foxconn, the largest contract electronics manufacturer globally, has unveiled plans to collaborate with Nvidia, the leading chip company, to construct innovative data centres referred to as "AI factories." These data centres will employ Nvidia chips and software for various applications, including self-driving cars. Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang revealed this initiative at Foxconn's annual tech showcase in Taipei. According to Huang, a new form of manufacturing, focused on intelligence production, is emerging, and these AI factories will serve that purpose. They will continuously collect and process data from autonomous electric vehicles, enhancing their capabilities. Nvidia emphasized that the AI factories will utilize its chips and software, including the cutting-edge GH200 superchip, while it faces restrictions on selling this technology in China.
I must admit, this is more than good news for them. Brilliant even. To join forces in competitive AI sector, as well as joining the self-driving cars development. Future could be bright for them. Anyhow, article continued that Nvidia's shares have surged significantly in 2023, leading to a market value exceeding 1 trillion USD, primarily attributed to the crucial role of Nvidia's chips in AI applications. Meanwhile, Foxconn, a major supplier of Apple's iPhones, aims to replicate its success in assembling personal computers and smartphones as it ventures into electric vehicle production for other firms. Foxconn and Nvidia had previously announced a partnership in January to develop autonomous vehicle platforms, with Foxconn manufacturing electronic control units for cars based on Nvidia's DRIVE Orin chip. This partnership now extends to building AI factories that will contribute to various applications, including self-driving cars, smart cities, and smart manufacturing.
Despite the fundamental part being strong, I have decided to check the Nvidia stocks anyway. In their whole time on the stock market, Nvidia managed to generate an incredible return of more than 53.000%.* In the last five years this number was 667%, and it seems it is not about to stop.* The all-time high price was just a little above the current one, at 493 USD per stock. Currently, price for a stock is 439,38 USD.* Nevertheless, I have decided to enter the market and keep an eye on it.
Movement of Nvidia stocks in the last five years. (Source: Investing) *
* Past performance is no guarantee of future results.