Nvidia, a prominent computer chip designer, witnessed a remarkable surge in its stock prices this week propelling the company’s valuation to nearly reach the trillion-dollar milestone.
With a notable surge of 24% in its stock price, Nvidia’s total worth has reached an impressive $939.3 billion. This valuation surpasses Tesla, valued at $584.7 billion, and Facebook, valued at $647.6 billion.
Nvidia now stands as one of the leading companies in terms of market capitalization, trailing only behind tech giants such as Apple, Google, Microsoft, Amazon, and Saudi Aramco, the Saudi state oil giant.
This significant upswing was triggered by the release of Nvidia’s latest quarterly results, which were made public in the latter part of Wednesday. The company revealed its plans to ramp up chip production in order to meet the escalating demand observed in the market.
Nvidia has successfully established its dominance in the realm of chips utilized for artificial intelligence (AI) systems.
The sector experienced an unprecedented surge in enthusiasm following the public debut of ChatGPT in November, extending its impact far beyond the confines of the technology industry.
ChatGPT has garnered immense popularity as an AI application, offering assistance in diverse areas such as speechwriting, computer programming, and even culinary pursuits.
However, the foundation for all these achievements rests on robust computer hardware, with a particular emphasis on the cutting-edge computer chips developed by Nvidia, headquartered in California.
Initially recognized for manufacturing computer chips primarily utilized for graphics processing, especially in the realm of computer gaming, Nvidia has now become a fundamental component of the majority of AI applications.
The training of ChatGPT involved an extensive utilization of Nvidia’s graphics processing units (GPUs). Specifically, approximately 10,000 of these GPUs were deployed and clustered together within a supercomputer owned by Microsoft.
It is only one of the many supercomputers built using Nvidia’s hardware. Currently, the American chip maker has secured about 95% of the GPU market for machine learning.