Source: Dao Shuo Blockchain
NVIDIA is one of the traditional tech companies that really interests me. I suggest everyone take some time to look up its growth process online, as I believe everyone can benefit greatly from it.
Initially, NVIDIA targeted a field that no one thought much of when it was first established because the gaming industry it aimed to serve didn’t have much of a market back then (in fact, even in today’s market, it’s not particularly “sexy”). The reason Huang Renxun’s angel investors invested in him to a large extent was because of the reputation he had gained from his previous boss.
After NVIDIA went public in 1999, its stock performance was decent, and it even went through a few stock splits. From less than $0.5 at its IPO in 1999 to $60 at the beginning of 2020, the stock price had increased over 100 times in the span of 20 years.
Its market expanded steadily from initially gaming graphics cards, later used for mining, and then for cloud computing. These markets were all good, but they all had visible ceilings.
NVIDIA’s stock price truly began to soar in 2022. From that year onwards, its stock price skyrocketed from $121 at the beginning of the year to $1200 now, a tenfold increase in just over 2 years.
The reasons for this are well known: NVIDIA’s chips became an indispensable core resource for AI applications, and AI is expected to penetrate every aspect of our lives in the near future, making the market unimaginably vast.
Looking at NVIDIA’s growth history, I believe its true transformation came with the rise of AI. Before that, it was more of a luxury. Since then, its position can at least be described as unparalleled in the coming years.
So as investors, even if we missed the first 20 years, if we catch on in 2022, we can still reap substantial profits.
In fact, for investors in our age group, this is an event we have experienced firsthand. If we pay attention to the development of the tech industry, possess independent thinking and judgment, we have the opportunity to seize such opportunities.
To be able to capitalize on the opportunities brought by the huge changes of the times, investors need profound insight, sharp judgment, and foresight.
The investment experience of Ark Invest’s Cathie Wood in NVIDIA is worth studying and pondering. Wood bought into NVIDIA in 2013. In 2015, after the rise of autonomous driving and deep learning, she went all-in on NVIDIA.
At that time, autonomous driving and deep learning were just emerging, and the specific application scenarios and business models were not yet clear. It was not easy to go all-in in such a scenario. This shows how good her insight and judgment were.
However, in early 2023, she sold a large chunk of NVIDIA, citing concerns that NVIDIA might follow in the footsteps of IBM. In my opinion, she could have been more forward-looking. At least for the next few years, NVIDIA’s position is unlikely to be challenged.
Of course, solely based on her investment performance in NVIDIA, she has already done exceptionally well. But from a project investment perspective, I believe there is still room for improvement.
I also noticed a similar phenomenon in Wood’s investments in the crypto field. Compared to retail investors who entered the field earlier than her, her entry point into Bitcoin wasn’t particularly cheap, but in the long run, it wasn’t bad either. However, her selling point was a bit puzzling, and her reasoning was not quite understandable.
Therefore, based on Wood’s investment experience, I believe that for assets we believe in and participate in, we should pay attention to their sustainability. Don’t let lack of foresight lead you to let go of potential opportunities prematurely and miss out on rare chances.
