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. I believe that after reading it, everyone will benefit greatly.
Initially, NVIDIA targeted a field that no one thought much of when it was first established because the gaming industry it wanted to serve had a very small market at the time (actually, even now, this field is not particularly “sexy”). The reason why Huang Renxun’s angel investors invested in him to a large extent was due to the reputation of his former boss.
After NVIDIA went public in 1999, its stock performance was decent, and it even underwent several stock splits. From less than $0.5 at the time of its IPO in 1999 to $60 at the beginning of 2020, the stock price increased by more than 100 times over 20 years.
Its market has steadily expanded from the initial gaming graphics cards to being used for mining, then for cloud computing. These markets are all good markets, but, all things considered, they are also markets with visible ceilings.
NVIDIA’s stock price truly began to soar in 2022. From that year, its stock price skyrocketed from $121 at the beginning of the year to $1200 now, increasing tenfold in just over two years.
We all know the reasons for this: NVIDIA’s chips have become indispensable core resources for AI applications, and AI will permeate every aspect of our lives in the near future, making this market unimaginably vast.
Looking back at NVIDIA’s growth history, I believe its true transformation is thanks to the rise of AI. Before that, its position was icing on the cake. Since then, its position can be said to be unique at least for the next few years.
So as investors, even if we missed the first 20 years, as long as we seize 2022, we can still reap significant profits.
In fact, for investors in our age group, this is an event we have experienced firsthand. If we follow the development of the technology industry, have independent thinking and judgment, we have the opportunity to seize such opportunities.
To seize the golden opportunities that the changing times bring to investors, on the one hand, investors need profound insight and sharp judgment, but on the other hand, investors also need foresight.
Insight and judgment refer to whether investors have the ability to see opportunities and act on them in a timely manner. Foresight refers to whether investors, after seizing opportunities, have the ability to look forward and estimate how long this potential can last – in simpler terms, the possible length of this race track.
In this regard, Cathie Wood from Ark Invest’s investment experience in NVIDIA is worth learning and reflecting on.
Wood bought into NVIDIA in 2013. After the rise of autonomous driving and deep learning in 2015, she heavily invested in NVIDIA.
In that era, autonomous driving and deep learning were just emerging, with specific application scenarios and business models not yet clear. To dare to heavily invest in such a scenario was not simple. This alone shows her excellent insight and judgment.
However, in early 2023, she sold a large amount of NVIDIA, citing that she believed NVIDIA might follow in the footsteps of Intel. In this regard, I think she could be more forward-looking. At least for the next few years, it will be difficult to challenge NVIDIA’s position.
Of course, in terms of her investment performance in NVIDIA alone, it is already outstanding, but from the perspective of project investment, I believe there is still room for further improvement.
I noticed a similar phenomenon in Wood’s investments in the crypto field. Compared to retail investors who entered this field earlier than her, her entry point into Bitcoin was not very cheap, but in the long run, it was not bad either. However, her selling point is somewhat perplexing, and her thought process is not entirely understood.
So from Wood’s investment experience, I believe that for assets we are optimistic about and have invested in, we should pay attention to their sustainability. Don’t let go of potential opportunities too early due to lack of foresight and miss out on rare opportunities.
