Winning The Race
NVIDIA is now valued at US $3.335 Trillion. The price of its shares increased by 3.51% to $135.87. NVIDIA had surpassed Apple to become second most valued company just days back. Artificial Intelligence has a major role to play in NVIDIA’s valuation.
The Company
NVIDIA Corporation (NVDA) is an American semiconductor company. It is a chief global manufacturer of high end graphics processing units (GPU). NVIDIA is based in Santa Clara, California and is seen to be the 80% majority share in global market of GPU semiconductor chips as of 2023.
AI Technology
Additionally, NVIDIA positioned itself as one of the primary providers of AI software and hardware. When the public was able to access OpenAI’s ChatGPT generative AI chatbot in 2022, it experienced a major breakthrough in the sector. With the use of a supercomputer driven by 10,000 NVIDIA GPUs, OpenAI developed its technique.
Manufacturing Unit
NVIDIA was also able to speed their chip manufacturing process, producing a new chip every six months rather than the industry average of 18 months. This process advantage offered NVIDIA a competitive advantage in the production cycle, as well as the ability to rapidly upgrade and integrate new technologies through large R&D spending.
People’s Views
“It’s Nvidia’s market; we’re all just trading in it,” said Steve Sosnick, chief market strategist at Interactive Brokers. “Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly, but a small misstep is likely to cause a major correction in the stock, and investors should be careful,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York.
Market Value
The market value of NVIDIA has expanded from $1 trillion to $2 trillion in just nine months. It only took three months to reach $3 trillion in June.