AI Helped Nvidia Reach $1 Trillion Mark
The market value of Nvidia Corporation was $1 trillion. Among all the companies involved in the production of chips, only it managed to achieve such a high figure. There are only 8 companies in the world that have been able to achieve such success. Nvidia came in ninth. As of today, only 5 of them maintain this level of capitalization: Alphabet, Apple, Amazon, Microsoft and Saudi Aramco.
Nvidia's first-quarter financial report shows revenue in excess of $2 billion. This is the second significant jump after a sharp increase in the company's revenue at the very beginning of the COVID-19 pandemic. Then there was a successful situation for it with a shortage in the world of graphics processors, which were very much needed by many for cryptocurrency mining and computer games. Will the second quarter be just as successful? Analysts at the company predict that their revenue for the period from April to June should be at least 50% higher than Wall Street believes.
Shares in the leading GPU maker have surged by about a quarter over the past week. The reason for the rapid rise in prices, apparently, was the increased demand for technologies related to artificial intelligence. Nvidia makes chips, systems, and programs that support generative AI. It is this type of artificial intelligence that formed the basis of the well-known ChatGPT and Google Bard chatbots, the DALL-E neural network for creating images, and many other analogues that are now at the peak of popularity.
At the recently held Computex 2023 in Taiwan, Nvidia's exhibit was mainly dedicated to AI technologies. It showcased games with the Avatar Cloud Engine (ACE) service that supports natural language processing methods, as well as the DGX GH200 supercomputer, based on the revolutionary Grace Hopper super chip. A set of 256 such super chips can provide artificial intelligence with 1 exaflops of performance.
To maintain capitalization at $1 trillion, the value of one Nvidia share must not fall below $404.86. Based on the NASDAQ data, the price has already dipped, so the company is no longer a trillionaire at the moment.