Nvidia: The New King of the Stock Market
How a Chip Maker's Bold Move into AI Transformed it into the World's Most Valuable Company
photo credit: Off-Grid Income
Key Takeaways
Nvidia's AI chips are integral to groundbreaking models like ChatGPT
The stock has increased by over 591,000% since its market debut in 1999
AMD, Nvidia competitor is run by Huang's cousin, LIsa Su
A week ago, Apple was the most valuable company in the world… until this Monday, when Microsoft stole the number one spot. But now there's a new king: Nvidia.
Founded in April 1993, Nvidia is now the undisputed most valuable company in the tech world, standing at a whopping $3.34 trillion. By the time you blink, it might lose that spot, but for now, we’ll let them gloat.
How did a small chip maker in the US transform into what they are today? Let’s dig into it!
Nvidia burst onto the market building chips for video games, which it did for a decade until CEO Jensen Huang decided to pivot into artificial intelligence. This was a smart move to get in early in the days of AI.
Nvidia started investing heavily in creating GPUs (graphic processing units), the chips needed to power the current AI revolution. After a while, this bet paid off.
Currently, Nvidia controls around 80% of the AI chip market. Their core products are:
computer chips
software
supercomputers
Nvidia’s fortune came from companies like OpenAI, which use their hardware to power ChatGPT, a large language model that is a leader in generative artificial intelligence.
Now, every major tech firm (Meta, Microsoft, Amazon) is buying their products in bulk, fueling a new arms race in the tech industry.
Since its stock market debut in 1999, Nvidia shares have soared over 500,000%. With a personal net worth over $100 billion, Huang is working to position the company to fend off competitors. Surprisingly, his potential biggest competitor, AMD (Advanced Micro Devices), is headed by Huang’s cousin, Lisa Su.
One can only wonder how their holiday dinner conversations go!
I'll be closely monitoring the AI chip war and will report back with more insights as this thrilling saga unfolds.
Until next time, stay savvy, stay informed, and keep an eye on those tech titans. Happy investing!
Off-Grid Income