Be Careful With Nvidia, AI Theme in 2025, Veteran Investor Dan Niles Says
January 16, 2025 at 05:40 am EST
Share
Dan Niles, founder of Niles Investment Management, says he expects AI spending to go through a "digestion phase" this year. Niles shares his views on why some of the Magnificent Seven tech stocks, such as Microsoft (MSFT) and Nvidia (NVDA), are not among his top picks for 2025. He also discusses his outlook for Chinese and Japanese markets. Niles speaks with Haslinda Amin and Mark Cranfield on Bloomberg Television.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (77.8%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (22.2%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (78%), gaming (17.1%), professional visualization (2.5%), automotive (1.8%) and other (0.6%).
Net sales are distributed geographically as follows: the United States (44.3%), Taiwan (22%), China (16.9%) and other (16.8%).