Chips for Nvidia play a key role in software with artificial intelligence. This also caused the stock price to rise, which has now reached a milestone.
The AI boom has pushed the chip company Nvidia’s market value over the three trillion dollar mark. A price increase of a good five percent to $1224.40 was the decisive factor. Nvidia is now in a row with Microsoft and Apple at the top of the list of the most valuable listed companies. Nvidia chips play a key role, especially in training software with artificial intelligence in data centers.
This is causing Nvidia’s business figures – and thus its share price – to skyrocket. In the last quarter alone, sales rose from 7.2 billion dollars in the previous year to 26 billion dollars – an increase of 262 percent. And demand remains strong: bottlenecks are looming for Nvidia’s new chip systems well into next year. The share price has risen by almost 150 percent since the beginning of the year.
Nvidia technologies were originally developed for graphics cards. But then it turned out that they were also ideal for the computing work involved in training applications with artificial intelligence. Nvidia’s chips thus became a key technology for the future of AI – and the company also benefits from the business with associated software and services.
Nvidia technology is now no longer just used for training, but also for operating AI applications, emphasizes CEO Jensen Huang. This has the potential to be an even more stable business. Although training requires enormous computing power, it is only necessary once per AI model. Huang also assumes that AI will generate all kinds of content in the future that is currently retrieved from databases.
Source: Stern
