Nvidia has reached a market value of $1 trillion as the demand for generative artificial intelligence tools from various tech companies soars up.
Nvidia’s last quarterly earnings report revealed a profit exceeding $2 billion in three months.
Nvidia, known for its graphic chips, shifted its focus to the data centre market in the last few years. The company experienced significant growth during the pandemic due to increased demand for gaming, cloud services, and cryptocurrency mining using Nvidia chips.
Jensen Huang, CEO of Nvidia, admitted to the overproduction of gaming GPUs that forced the company to sell them at lower prices. Nonetheless, in the following report in February, there was a more optimistic outlook due to the buzz surrounding ChatGPT. Huang emphasised the potential growth of Nvidia’s data centre, and the data centre revenue has hit a new record.
Following the success of OpenAI’s ChatGPT, tech giants such as Alphabet and Microsoft are also exploring generative AI, the demand for data centre chips saw major growth.
In the last quarterly earnings report, Nvidia reported a profit of over $2 billion in just three months.
Nvidia’s chips are crucial for companies that seek to develop AI-based products, making it a prominent supplier in this field. Huang’s investment in AI is expected to drive further growth in the near future.
During the Computex 2023 keynote, Nvidia went all in on AI. It introduced a new DGX supercomputer featuring the latest Grace Hopper Superchip, which can deliver an exaflop of AI performance. It showed how games use the company’s Avatar Cloud Engine (ACE) for Games to support natural language input and responses.
At the start of trading today, Nvidia’s value exceeded $400 per share, now valued at over a trillion dollars. This puts the chipmaker in the same league as Apple and Meta, who surpassed the trillion-dollar mark in 2018 and 2021, respectively. Other tech giants such as Microsoft, Amazon, and Google are also part of the trillion-dollar club, including Meta