“The next big thing.” It’s what every investor and trader hopes to find. As such, it’s no wonder people spend their lives searching for that next big thing. Is it possible that Nividia’s Omniverse could be that fabled opportunity for retail investors and traders?
The tech company’s CEO, Jensen Huang, certainly seems to think so. He’s betting big on the NVDA Omniverse. This begs the question: Should retail investors and traders do the same?
What Is the NVDA Omniverse?
While Nividia (NVDA) has spent much of its nearly 30 year history designing graphics processing units (GPUs) for gaming and professional industries and system on a chip units (SoCs) for mobile and automotive industries, the company and its CEO are embarking on a massive new venture called the NVDA Omniverse.
Revealed in the company’s 2021 GPU Technology Conference keynote, the NVDA Omniverse uses real-time rendering to create a wholly photorealistic virtual reality realm that users can collaborate with in real time.
The NVDA Omniverse is so photorealistic that the company managed to trick conference viewers and journalists alike for much of the keynote, with many completely oblivious to the fact that the version of CEO Jensen Huang they were watching on-screen was in fact CGI himself, along with the entire location his speech took place.
At its heart, the NVDA Omniverse is a simulated reality that comes equipped with realistic visuals and physics. The possibilities of such a place are truly endless, with the potential to completely change the way the professional world works once the NVDA Omniverse is officially rolled out.
What Is Nvidia CEO’s Vision for the Omniverse?
While CEO Jensen Huang used the Omniverse to have a little fun with keynote viewers and reporters during the 2021 GTC conference, his vision for the Omniverse is far more serious than just pulling pranks on unsuspecting audiences.
Through the use of Nvidia’s RTX (or ray tracing) technology, the Omniverse gives users the ability to calculate and simulate objects, engines, and artificially intelligent tech to observe the physics and the implications before attempting to implicate these objects, engines, and tech in the real world.
Nvidia’s CEO envisions this technology will completely transform the way the world works, plays, and conducts business going forward. BMW is already utilizing the Omniverse to design their factories, using the technology to better strategically plan the layout of the space virtually before physically building it in the real world.
Is Nvidia Omniverse A Game Engine?
Jensen hypothesizes the Omniverse will transform robotics, moviemaking, architecture, communication, manufacturing, gaming, and even an eventual Omniverse economy that Huang sees becoming bigger than the global economy we know today.
In Huang’s opinion, this totally immersive 3D tool — once it’s released to the public — will undoubtedly bring forth a digital revolution of sorts, opening up industries once thought unreachable to the average Joe and allowing users to participate in an economy that actually gives them a fair chance to participate and succeed.
In other words, the Omniverse is visualized as a way of leveling the playing field by making it virtual.
What Will This Mean for NVDA Stock?
If the NVDA Omniverse is as successful and as revolutionary as CEO Jensen Huang envisions it to be, then there’s no denying that this will send NVDA stock to new heights.
You can already observe the Omniverse’s impact on the company’s stock so far, with its steady rise in the months since the 2021 GTC keynote in mid-April: the company’s price per share rose from $150+ on in Q2 to almost $220 by Q3.
Over the next 12 months, financial analysts predict this price per share could rise as high as $300 a share.
Omniverse Enterprise is currently only available in a limited early access, but NVDA expects to make this software more available by the end of the year via a subscription model through its partner network. Similar access will be granted to software developers later on the line, tentatively called the Developer Program.
Once more people begin to get their hands on the Omniverse and the implications of the groundbreaking technology becomes clearer to the masses, NVDA stock should continue to rise (granted the reviews are as positive then as they have been lately).
The Bottom Line: Why Nvidia’s CEO Is Betting on the Omniverse
In short, Nvidia’s CEO is betting big on the Omniverse. If Jensen Huang’s vision comes true, then the NVDA Omniverse will have remarkable real-world implications on countless industries the world over. From robotics to architecture to manufacturing and everything in between, the NVDA Omniverse has the potential to change the way the world gets work done — and, as a result, send Nvidia’s stock to record heights not yet seen before by investors and traders.
All eyes will be turned to the partners and developers who gain access to the NVDA Omniverse later on in 2021, as their reactions and the work they manage to do with the help of the platform will determine exactly how big of an impact this new Nvidia technology will have on the future.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.