Why Nvidia is Leading the AI Wave

Nvidia's success can be attributed to two main factors: performance and promise. In terms of performance, they consistently meet or exceed their earnings and revenue projections. They have a strong track record of delivering on expectations. Additionally, Nvidia's graphic processing units are well-suited for generative AI, giving them an advantage over competitors like Intel. Unlike most companies in the industry, Nvidia focuses on chip design rather than manufacturing, allowing them to see ahead and stay ahead of the competition. Their market cap of $952 billion is higher than Intel, AMD, Qualcomm, and TSMC combined. However, their current enterprise value to EBITDA ratio suggests they may be overvalued compared to other tech giants like Meta, Apple, and Google.