Nvidia Corp. continues to dominate the GPU Chip market with it’s latest AI chip facing stiffer competition from VMWare which is known of using more advanced A.I. Technologies to address Global challenges in communication and argumentation in manufacturing and logistics.

Is this the best time for Investors to take a deeper interest into VMware and C3.ai corporations which addresses similar issues at seamless pace with their A.I. capabilities?

 Nvidia’s professional line of GPUs are used for edge-to-cloud computing and in supercomputers and workstations for applications in such fields as architecture, engineering and construction, media and entertainment, automotive, scientific research, and manufacturing design. Its GeForce line of GPUs are aimed at the consumer market and are used in applications such as video editing, 3D rendering and PC gaming. In the second quarter of 2023, Nvidia had a market share of 80.2% in the discrete desktop GPU market. The company expanded its presence in the gaming industry with the introduction of the Shield Portable, Shield Tablet and Shield TV, as well as its cloud gaming service GeForce.

Over the last 12 months, the company’s value has soared by 265%, due largely to the artificial intelligence (AI) boom and surging demand for AI-related chips.

Currently, NVDA trades at a 12-month price-to-sales ratio of 39x. This means investors are paying $39 for every $1 of revenue the company generates. This high ratio suggests that price- and valuation-insensitive investors, along with momentum investors chasing the stock’s performance, have driven NVDA shares to unsustainable heights.

• Nvidia’s stock is soaring due to increased demand for AI chips, but technical indicators suggest NVDA may be overbought.
• NVDA’s relative strength index suggests that a price correction may be in the works.
• Although Wall Street analysts are bullish on Nvidia, their price targets suggest a potential downsid

Its GeForce line of GPUs is not condusive consumer markets. GeForce is not suitable nor instrumental for applications such as video editing, 3D rendering and PC gaming.