Hey there, my fellow tech enthusiasts! Today, we’re talking about Nvidia, the company that just temporarily joined the trillion-dollar club thanks to the AI boom. That’s right, Nvidia’s valuation reached over $1 trillion on Tuesday morning, and it’s all thanks to the increasing demand for generative artificial intelligence tools in products from big and small tech companies alike. Nvidia’s chips are a key supplier in this field, making it a valuable asset for those trying to build something with AI.
It’s worth noting that Nvidia isn’t the first tech company to break the trillion-dollar barrier. Apple and Microsoft both surpassed this significant mark in August 2018 and August 2019, respectively. Amazon and Google are also part of this exclusive club, while Meta was a former member. However, Nvidia’s rise to this level is still impressive and worth taking note of.
Of course, it’s not all smooth sailing for Nvidia. When the market closed on Monday, the share price had fallen back to $401.11 after peaking at about $419. That means its stock value is currently hovering around $992 billion or so, taking it out of the trillion-dollar club once again.
But overall, it’s clear that Nvidia is doing well. Its last quarterly earnings report showed over $2 billion in profit in just three months, and its business boomed early in the pandemic when GPUs were in high demand for PC gaming and cryptocurrency mining (before those markets fell back throughout 2022).
In fact, Nvidia has been betting big on AI for years now. Back in 2016, it unveiled a powerful new chip specifically designed for AI tasks. And in 2017, both Nvidia and AMD were benefiting from the growing demand for AI while Intel struggled to keep up.
Fast forward to today, and Nvidia is still making waves in the AI world. Its Computex 2023 keynote over the weekend was full of AI-related announcements, including a demo of games using its Avatar Cloud Engine (ACE) for Games to support natural language both for input and responses. It also unveiled a new DGX GH200 supercomputer built around its latest Grace Hopper Superchip that’s capable of an exaflop of AI performance.
So, while Nvidia may have dipped below the trillion-dollar mark for now, there’s no denying that it’s a major player in the AI space and will likely continue to be for years to come.