Nvidia Business Strategy

If you had bought Nvidia’s stocks on the last day of 2022 at around $143, you would be happy to see $438 closing today. What happened to this company?

The first thought that came to my mind was, “Great case study on business strategy.” Therefore, I decided to do a partial strategy analysis with the tool I learned from my new Strategy class.

– Its competency is in the graphic processing cards (GPUs) design, production, and distribution (through outsourcing).

– Its value proposition is the ability of the GPU to run on massive amounts of data with its own software stacks.

– The market needs are met with GPUs needed in various applications.

– The trend of AI provides a perfect timing for its expansion.

– The revenue model is mainly from GPU sales, OEM and IP, Data Centers, and data-related offerings.