Nvidia is the world’s smartest company in 2017. That’s according to the recently published MIT Technology Review’s annual listing of the 50 smartest companies, which surveys both small and large companies based on their ability to innovate and execute.
Nvidia has leveraged its core capabilities in visual computing to address new market opportunities. The company develops brands and platforms for fast growing markets- Gaming, Professional Visualization, Datacenter and Automotive – where visual computing is essential and valued. Like Quadro for design professionals working in computer-aided design, video editing, special effects and other creative applications.
“Though Nvidia still makes most of its money from selling graphics chips for video games, it has established itself as the leading provider of processing power for AI software, and its newer, AI-related businesses are growing quickly,” says the report. “During its most recent financial quarter, revenues from its data-center and automotive businesses increased by 186 percent and 24 percent, respectively, over the previous year. The company says all the major Internet and cloud-service providers use its chips to accelerate their processes, and a number of large carmakers, including Toyota, are using its autonomous-driving technology.”
Wall Street has taken notice, especially the momentum crowd that focuses on revenue growth more than anything else. Nvidia’s stock has tripled over the last twelve months, beating close competitor Advanced Micro Devices.
|Company||12-month Price Changes||Forward PE||Operating Margins|
|Advanced Micro Devices (AMD)||250%||45.62||-7.68|
Source: Finance.yahoo.com 6/28/2017
Still, investors should take MIT’s rankings with great deal of caution, as one year’s winner may turn out to be next year’s loser. Besides, reproducing a technology based advantage over the long term is both an expensive and a risky proposition.
My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.[“Source-forbes”]