- Nvidia posted huge fourth quarter results on Tuesday, up 265% from one year prior, launching the largest one-day single-stock rally the market has ever seen.
- Investors are flocking to Nvidia, believing that the company has the potential to ride a new wave of technological innovation that could increase productivity across the economy through faster computers and artificial intelligence.
- “Nvidia has already made strides in increased efficiency, which is a tremendous advantage in this regard due to the sheer volume of calculations that must be performed to make a technology like AI possible,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the Daily Caller News Foundation. “Being on the cutting edge of chip technology puts a firm in a position to truly command the market.”
(DCNF)—American technology company Nvidia has shot up in value over the last several years following speculation about the potential economic impact of new computing technology that some investors believe could increase productivity substantially.
Nvidia posted huge year-end quarterly profits Tuesday evening, up 265% from a year prior as the company continues to grow at breakneck speeds, according to the company’s fourth quarter results. The fourth quarter gain beat expectations and led to a $277 billion stock rally on Wednesday, up 16.3% in just the day, making it the largest single-day increase in the New York Stock Exchange’s history, according to Reuters.
Investor hype around Nvidia is due to its stake in the semiconductor market, where it commands a vast majority of market share in artificial intelligence (AI) related technologies, experts told the Daily Caller News Foundation. Many investors predict that AI and greater computing efficiency will be a boon to businesses, which could greatly increase productivity using the technology for a wide array of applications.
“Nvidia has already made strides in increased efficiency, which is a tremendous advantage in this regard due to the sheer volume of calculations that must be performed to make a technology like AI possible,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the DCNF. “With the ability to position data centers virtually anywhere, size is not really a major issue anymore for chips, but efficiency is due to increased energy prices and environmental regulations. Being on the cutting edge of chip technology puts a firm in a position to truly command the market.”
Nvidia was first founded in 1993, introducing products related to 3D graphics, particularly for gaming and multimedia creation, and later invented the graphics processing unit in 1999, taking a big step for computing power, according to the company’s website. The company also claims to have sparked the era of modern AI in 2012, way ahead of trends around the technology, giving it a commanding lead on other technology companies that are now looking to catch up and expand into AI.
“Nvidia controls most (about four-fifths) of the chip market for AI-related technologies,” Antoni told the DCNF. “The explosion of demand around AI has boosted chip demand too, leading to growth forecasts for Nvidia that were completely off the table just a couple years ago. Like all stock prices, no one can say for sure if Nvidia’s current popularity is warranted because stock prices are speculation on future earnings, and the future is by definition uncertain. This is particularly true for AI, where so much of the potential is unknown.”
Nvidia’s stock price has exploded over the past few years, measuring less than $40 a share at the start of 2019, peaking at over $310 a share in November 2021, before sliding to around $127 a share in October 2022, ultimately climbing all the way to around $800 a share in February 2024, according to MarketWatch.
Nvidia breaks stock market record with a $247 billion one-day market cap surge, as reported by Bloomberg.
Renowned for AI & fast computing, #Nvidia hits a major financial milestone with its staggering revenue.
Stock up nearly 280% in the past year!#AI #Crypto #Stocks pic.twitter.com/Qv9aQ3LP14
— Christiaan (@ChristiaanDefi) February 23, 2024
“The fact that the demand for these products is growing indicates to me that our society, these companies, educational organizations, all the different users of AI believe that there is great value here that can improve our lives,” David Inserra, a fellow for free expression and technology at the Cato Institute, told the DCNF. “I can’t predict that it will certainly be that way. But every indicator that we have indicates that the market is saying there’s great value here. I think that we’d be foolish to ignore that important market indicator.”
Generative AI powered by the type of technology Nvidia is leading the way on is already finding several applications in business despite being in its infancy, including in customer service, cybersecurity, personal assistants, inventory management, accounting and more, according to Forbes. The U.S. is also looking to use semiconductor technology and AI in military applications and is trying to prevent China’s access to the equipment to maintain a technological and militaristic edge.
American companies controlled around 48% of the market share in the semiconductor market in 2022, compared to 7% in China, according to Statista. South Korea controlled the second-largest market share with 19%, followed by Japan and the European Union at 9%.
The Biden administration has placed a number of restrictions on the semiconductor industry to ensure continued American supremacy, including putting sanctions on several Chinese chip manufacturers in October 2022 to prevent them from working with American firms. Congress has also approved $39 billion in direct funding for chip manufacturers as part of the August 2022 Chip and Science Act.
The rollout of the funds has so far failed to bring a substantial number of chip manufacturing plants into operation, with several companies pushing back new plant completion dates to 2025 or later due to volatility in chip prices and government funding uncertainty.
The growth of generative AI powered by new chips has also led to concerns that the technology is being given a liberal skew, such as Google’s AI chatbot Gemini taking a nuanced position on the terrorist organization Hamas’ stance on the violent eradication of Israel and whether China is committing genocide against the Uyghur people.
Nvidia is part of what has been dubbed the Magnificent Seven Stocks, which are stocks that have delivered a large portion of stock growth in the past few years, according to Yahoo Finance. Tesla, an electric vehicle (EV) company, has had a similar meteoric rise starting slightly earlier but has since remained relatively stagnant in 2024 as other competitors in the EV field emerge, raising concerns that Nvidia might not live up to expectations.
“This is always the market dynamic, right? If someone comes along and delivers a more desirable product, well then yeah, sure,” Inserra told the DCNF about the potential for Nvidia to lose its current investor hype. “Right now we’re talking a lot about AI, but what if a new kind of AI, a better type or even more advanced, better type of technology emerges and uses different kinds of computing power? We don’t know what the future of innovation could bring. So to that extent, yeah, it’s possible that Nvidia isn’t going to be the golden child of this forever, but from what I’ve read, it seems like they have been forward-leaning and looking for ways to move into new spaces in the use of their processors for AI, and so right now they have that leg up.”
Nvidia declined to comment to the DCNF.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.