Gaming PC

Nvidia, AMD Stocks Up Sharply as AI Drives Chip Demand

Nvidia has unveiled its latest set. Quarterly financial After the market closes on Wednesday evening. Reading the first paragraph of the press release barely mentions the typical ups and downs of earnings trends. However, NVIDIA stock has generated an incredible amount of interest overnight, with him up nearly 30% in pre-market prices at the time of writing. In fact, Nvidia appears to be on its way to becoming the first semiconductor chip maker with a $1 trillion market cap.

The reason for the Nvidia boom has little or nothing to do with gaming graphics cards, which are very popular among PC enthusiasts and gamers. Rather, rocket fuel here is his Nvidia’s perceived pivotal role in accelerating the AI ​​revolution.

(Image source: Google Finance)

“The computer industry is going through two simultaneous transitions: accelerated computing and generative AI,” said Nvidia founder and CEO Jensen Huang. Huang further predicted that he has $1 trillion worth of data center infrastructure ready for generative AI purposes. Coincidentally, with today’s valuation surge, Nvidia is about to become his first trillion-dollar chip company.

(Image credit: Nvidia)

In the chart above, we can see that Nvidia, the PC graphics company that was once much talked about in the data center, is now firmly a data center accelerator company. After a long conception period, this transition plagued the company a lot last year. According to the latest figures, data center revenue was almost double that of the gaming division. Also, looking at changes/trends, we can see positive momentum in segments such as Data Center, Visualization, and Automotive.

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