Nvidia’s AI gambit pays off as it hits trillion dollar valuation
Nvidiais now valued at a trillion dollars, making it the first company of its kind to join this exclusive club should its stock price continue to surge.
The California-based Nvidia has hit a trillion-dollar valuation after having an excessively good stock forecast.Sharescurrently sitting around $410 as of the time of writing.
Nvidia’s success is largely in part due to its early investment in AI, offering systems and hardware explicitly designed to train all types of models.OpenAI, the creators ofChatGPT, has recently entered a deal with Nvidia to use nearly30,000 GPUsto better train the AI.
This resulted in a ludicrous forecast for the value of the company last week, from $189 billion to a projected $945 billion. Now Nvidia has hit a trillion-dollar valuation, it makes them the first semiconductor company of its kind to reach this level of value.
As of right now within the tech industry,Apple,Microsoft, and Alphabet (Google’s parent company) are the only companies worth a trillion dollars.Amazon,Tesla, andMetahave all once been present but have receded.
Why Nvidia is perfectly poised to deliver AI products
The AI industry has been in Nvidia’s hands around 2016 when it began to work on systems like the DGX. They also began providingspecialized graphics cardsto make up the needed power to feed AI and machine learning projects.
Since then,Nvidia and AIhave become synonymous, and it has seeped into nearly everything they do.DLSS, its supersampling algorithm, will now utilize more AI functionality to power itsframe generation technology, as well as improve the quality of the image.
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Even in the creative workspace, AI now powers the company’sBroadcast software. This can utilize the GPU onboard the system to help block out noise, add filters to webcams, and even generate a fake green screen effect.
The company doesn’t appear to be slowing down either. At Microsoft Build ’23, Nvidia announced that they’d beupgrading the performanceof AI on Windows 11 for those using RTX cards. They also announced arefreshed supercomputerat Computex, with Jensen Huang being the star of the show right now.
However, despite the successes, Huang has taken a10% pay cutafter missing sales targets and is now warning the US to back down from itssanctions on China.
