Nvidia’s stock continued to climb amid the widespread adoption of generative AI, becoming the first semiconductor company in history to break the $1 trillion barrier, reaching $1.1 trillion. Nvidia shares are trading at $412.71 at the time of writing, up 6% from the previous day and up a whopping 188% for the year so far. As a result, Nvidia joins the elite club alongside Apple, Microsoft, Saudi Aramako, Alphabet (Google) and Amazon, and is one of only six companies with a market cap of over $1 trillion.
Nvidia’s phenomenal growth throughout the year was due to the explosion of large-scale language models such as generative AI and ChatGPT into the mainstream, as blue-chip tech companies such as Google, Meta, and Microsoft sought to enhance their AI capabilities. That’s because we’ve invested heavily in AI infrastructure.
Nvidia has played a pivotal role in developing the AI ecosystem for hardware, but perhaps even more important is the software that drives the AI revolution. Boasting the undisputed lead in the processing power of AI hardware and the strength of his CUDA software programming model, Nvidia appears to have no clear opponent for the leadership position.
Nvidia further cemented its position at Computex 2023 this week with a broad portfolio of new solutions for a wide range of disciplines, from massive supercomputers like the DGX GH200 to a new reference MGX system design that brings AI to mainstream data centers. announced. and enterprise. Nvidia is also leveraging the fruits of its strategic acquisition of Mellanox to develop its own AI-centric networking infrastructure that ties its solutions together, giving it an additional advantage over its competitors: a datacenter-scale, tightly coupled system. It gives you the ability to design.
For now, Nvidia’s biggest problem is meeting the exploding demand for GPUs that have led to a shortage. Still, the company has invested heavily to increase its production capacity. The company has taken more drastic steps, such as asking Intel to manufacture its GPUs, to ensure that supply constraints at major foundry partner TSMC don’t hamper its growth.
