

Yet similar to CPUs, and much like Intel’s x86 standard, virtually any industry application can utilize NVIDIA’s GPUs to accelerate performance, thanks to CUDA’s programmability and rich library of software that has been developed for more than a decade. While a CPU usually has between a couple and a few dozen cores that are very fast at computation, that contrasts with a CUDA-based NVIDIA GPU that breaks a computation down across hundreds or even thousands of cores and completes it in a fraction of the time. As those CPU efficiency gains have slowed over the past several years, developers have begun utilizing GPUs to accelerate applications. The central processing unit (CPU) has been the workhorse of general-purpose computing for decades, as reliable, almost annual efficiency gains helped drive the development of increasingly complex computing applications. NVIDIA’s compute acceleration platform forms the backbone of a unique value proposition for steadily emerging compute-intensive applications, such as image processing, natural language processing, assisted driving, and ray tracing (the latter relates to the video game domain). “NVIDIA is a pioneer in the development of the graphics processing unit (GPU) – a semiconductor traditionally utilized for rendering computer graphics – and has extended the GPU beyond the graphics domain into “general purpose computing.” We attribute NVIDIA’s success in general purpose computing to their proprietary computing platform and programming model, known as CUDA. Let’s take a look at comments made by Wedgewood Partners about Nvidia Corp (NASDAQ: NVDA) in the Q3 2019 investor letter. Wedgewood Partners fund posted a return of 0.39% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.87% in the same quarter. This suggests that the investment firm was right in its decision.

The stock has posted a return of 148.2% in the trailing one year period, outperforming the S&P 500 Index which returned 14.4% in the same period. The investment firm bought Nvidia Corp (NASDAQ: NVDA) stock in Q3 2019. In October 2019, Wedgewood Partners had released its Q3 2019 investor letter.
