Nvidia: The New Giant of the Stock Market
Guess what? Nvidia has just sidelined Microsoft and Apple to become the undisputed champion of the stock market. Yes, you heard that right! Nvidia now boasts a market capitalization of $3.34 trillion, leaving Microsoft with its $3.32 trillion and Apple with its $3.29 trillion in the dust.
Nvidia’s stocks? Well, they’re currently trading around $135 after a 10-for-1 stock split in June. Before the split, Nvidia’s stocks were more of the flirting-with-$1,200 type. All this just to secure a spot in the Dow Jones Industrial Average, blending in with the crowd.
Overview of Nvidia’s share price after the stock split. Source: TradingView.
Nvidia : From Video Games to AI Giant
In 1991, Nvidia was just a player in the video game world with its high-performance graphics cards. Today, they’re leading the AI revolution. Quite the transformation, huh?
During the cryptocurrency mining gold rush around 2010, Nvidia’s GPUs were everywhere. Then ASICs arrived, and Nvidia pivoted to AI. Today, their GPUs are the darlings of big names like OpenAI, Google, Amazon, and even Microsoft.
The AI Arms Race
For the first quarter, Nvidia announced impressive results with revenues of $26 billion, including $22.6 billion from data centers. Jensen Huang, Nvidia’s founder and CEO, floated the idea of releasing new AI chips every year. Like a modern industrial revolution, they aim to shake up every sector of the global economy. From horses to electric supercars, it seems.
Previously, Nvidia released new versions of its high-end microprocessors every two years, with Ampere in 2020, Hopper in 2022, and now Blackwell in 2024. Now, they’re accelerating to release new chips annually.
Software is eating the world, but AI is going to eat software.
Jensen Huang
Towards the Future
Nvidia is on a roll and doesn’t seem to be stopping anytime soon. Will the other tech giants keep up, or will Nvidia remain on top? Only time will tell, but one thing’s for sure: they’ve stamped their mark on the innovation scene in tech.
If you want more information about Nvidia’s vision, take a look at this video from March (which frankly amazed me):