Bitrabo Editorial
The market capitalization of Nvidia hit a significant milestone of $1 trillion thanks to the surging demand for artificial intelligence technology.
This achievement occurred on May 30 during trading hours in the United States when the company’s shares hit a peak of over $418, before settling at just above $401 for a market capitalization of $992 million.
Opportunities for Growth in the AI Market
Despite worries about overinflation, Nvidia’s recent stock surge suggests ample opportunity for the company to expand, especially with the belief that the artificial intelligence (AI) industry is only starting.
Nvidia stock hitting $418. Source: FOX Business
Analyst Jim Kelleher from Argus Research noted how technical traders and AI frenzy propelled Nvidia toward the $1 trillion market capitalization, albeit at a high valuation. With more than 180% year-to-date gain, Nvidia has witnessed a surging demand for graphics processing units (GPUs) powering generative AI tools. A recent Reuters report highlighted that Nvidia manufactures 80% of these GPUs which further solidify its dominance in the market. Only Amazon, Apple, Microsoft, and Alphabet have surpassed the $1 trillion valuation mark in the United States.
Nvidia’s Advancements in AI Featured at Computex 2023 Keynote
The Computex 2023 keynote provided a forum for Nvidia to make several significant announcements, unveiling the company’s advancements in artificial intelligence. The demo games utilized Nvidia’s Avatar Cloud Engine (ACE) for Games, which supports natural language for both input and responses. Moreover, Nvidia introduced DGX GH200, a supercomputer built solely around its latest Grace Hopper Superchip, which can deliver an exaflop of AI performance, marking an incredible computational power leap for AI applications.
BTCUSD retreats into the $27K region. Chart: TradingView.com
The Increasing Demand for AI
Nvidia is not the only player in the race to bring AI-ready chips to the market. In April, the former CEO of Twitter, Elon Musk, announced his acquisition of thousands of general processing units (GPUs) for an upcoming AI project at Twitter. Similarly, Microsoft is actively working on developing its AI chip for not only OpenAI but also for internal projects. These developments highlight the intensifying competition and the increasing emphasis on AI hardware capabilities. As the demand for AI continues to grow, companies like Nvidia, Twitter, and Microsoft are investing heavily in specialized chips suitable to support AI applications across various domains.
-Featured image from FOX Business