How NVIDIA Hijacked a $2 Trillion Market

“The most important stock on planet earth" predicts revenue of $22 billion in Q1, but what does that mean for you? In the next 5 minutes, we're going to discuss how anyone can learn from NVIDIA’s unprecedented growth.

Welcome to The Wolf on Wealth, the only newsletter that cuts through the bullshit to deliver the insight and tried-and-true tactics to help you build massive wealth and live a more empowered, fulfilling life.

If you were forwarded this email, join “the pack” of over 200k wealth-focused wolves right here, for free.

Today’s Rundown

• How NVIDIA Became a 30-Year Overnight Success (Story)

• A Key Lesson from NVIDIA’s President (Insight)

• The 1 Decision that Will Eliminate 1,000 Choices (Action)

NVIDIA’s 30-Year “Overnight Success” 🌝

(This section contains a business story that you need to know)

During a gold rush, as the story goes, the company selling shovels ends up making the most money. NVIDIA experienced a similar phenomenon, but instead of selling shovels, they were selling GPUs (graphics processing units).

Since the 1990s, GPUs were primarily used in a relatively small market for gaming consoles since they are able render 3D graphics in real-time and perform highly technical calculations. They worked alongside CPUs (central processing units), which are part of a much larger market because they act as the brains of every device you own, be that a computer, mobile phone, smart watch, or thermostat.

At this point in the story, you can picture CPUs as Miss Universe pageant-waving to fans and GPUs as Miss Daytona 500 shotgunning her second beer of the morning. So while tech giants like Intel and Qualcomm were busy manufacturing CPUs, NVIDIA took control of around 80 percent of the mostly ignored GPU market.

Meanwhile, as NVIDIA was conquering this $9 billion dollar gaming market, AI (artificial intelligence) startups were making leaps and bounds in this emerging field. However, what they quickly realized was that CPUs were not powerful or efficient enough to get the job done. By sheer happenstance, it turned out that the qualities that make a GPU chip perfect for 3D images and full motion video turned out to be the exact type of chip needed for the advancement of AI.

This was the “holy shit” moment for NVIDIA. Seemingly overnight, NVIDIA controlled the most sought after commodity on planet earth. They had spent over a decade cornering the niche market of shovels to move snow when they realized that these same shovels could be used to mine gold! As such, they made the pivot and went all in on GPUs for AI technology.

According to NVIDIA’s own blog, GPUs crush CPUs in AI for three reasons:

• GPUs employ parallel processing

• GPU systems scale up to supercomputing heights

• The GPU software stack for AI is broad and deep

So Miss Universe (CPUs) gets caught with a bag of blow going through customs while Miss Daytona 500 (GPUs) goes on a Forrest Gump-like winning streak, miraculously turning her wet tee shirt winnings into private-island wealth. NVIDIA possessed the missing piece not only to fast-track AI technology but to catapult them from a $40 billion dollar gaming market into a projected $1.3 Trillion AI market.

Key takeaways: Accident or not, luck or coincidence, the company made one major decision to confirm their unprecedented fate: they went all in at the exact right time.

A Key Lesson from NVIDIA’s President 📈

(This section teaches business insights to implement into your life)

👉 INSIGHT: Know when to pivot AND know when to go all in on that pivot.

In the example of NVIDIA, President Jensen Huang said, “The company’s focus was steered away from its core business. And it wasn’t just in one place, it’s all over the company. It was a wholesale pivot in this new direction.”

The moment they saw a potential shift to AI computing, they changed their entire trajectory and fully committed to the goal. This singular vision, combined with some luck, excellent timing, and a million other intangibles that happened to line up like a full planetary alignment, led to insane dominance in the market.

Similarly, we can think of other founders going all in on pivots, such as…

• Nintendo was a playing card company who shifted to video games

• Instagram was originally a location-based social app called Burbn

• Twitter was developed as a platform for podcast hosting

• Slack was created as an internal chat tool for a gaming company

When we think of incredible business leaders, we never think about the ones who start on third base and have no difficult decisions to make.

We think of the leaders who make incredible calculated risks when they realize they have an unfair advantage. Know when to pivot AND when to go ALL IN on that decision.

1 Decision to Eliminate 1,000 Choices 🧠

(This section provides actionable tactics you can apply right away)

When you know your singular focus, all decisions suddenly become binary. In short, you’re measuring every decision against your major goal. In another real world example, the British rowing team had not won a medal since 1912. In two words, they sucked. 

Ahead of the 2000 Sydney Olympics, after 88 years of suck, the team stumbled upon a singular strategy that led to them winning Olympic Gold. It all came down to one question: Will it make the boat go faster?

With every single opportunity, they would ask themselves this question. If the answer was no, the decision was no. 

• Tempted to eat fast food? Will it make the boat go faster?

• Want to party and not sleep? Will it make the boat go faster?

• Will you skip practice? Will it make the boat go faster?

NVIDIA’s singular question eventually became something like: will this lead to advancements in AI computing? Yes, take action. No, move on.

When you find what works for you, you have to ask yourself which singular question will help you conquer your goals. Reply to this email with your singular focus for business greatness and we’ll share our favorites in a future newsletter.

Wolfy Memes of the Week 🤣 

Bite-Sized Reads for the Road 📚

[Watch] Billionaire explains why NVIDIA stock is exploding, the difference in GPUs versus CPUs, how AI uses vector math, and what’s next for NVIDIA…

[Read] Interview with NVIDIA President Jensen Huang on their remarkable pivot, how they used their “one shot,” and the future of the GPU company…

[Read] NVIDIA hits impressive “tipping point,” makes AI stock rally, and why the company believes this is just year 1 of a 10-year growth cycle…

Rate Today’s Edition

Publisher: Jordan Belfort

Editor in Chief: Brock Swinson and Davis Richardson

DISCLAIMER: None of this is financial advice. This newsletter is strictly for educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.