Maintaining Chip Demand

Nvidia has a brilliant strategy to ensure that its chips are in high demand for years to come. The chip maker is investing in early-stage companies which operate in industries that will require large amounts of GPUs for growth. Having Nvidia as a shareholder increases the odds that these companies will continue to spend millions on new Nvidia GPUs.

In the last two months, there have been at least four deals where Nvidia has taken stakes in relevant start ups. As you can see from the list below, the companies either deal with AI or cloud computing, the two leading customers for GPU cards.

- Cohere, AI foundational models
- CoreWeave, cloud services
- Synthesia, creates AI-generated videos
- Inflection AI, machine learning (AI)

The added benefit is that one of these companies could strike it big, giving Nvidia a large investment return. As it stands, Nvidia is the best-positioned company to take advantage of the AI boom.