Nvidia Briefly Joins Trillion Dollar Club Thanks To AI
On Tuesday morning, graphics card creator Nvidia astonished the world after briefly becoming a $1 trillion company. On May 30, 2023, its valuation exceeded the trillion-dollar benchmark as stock trading opened at over $405 per share. However, the price decreased to $401.11 after peaking at $419, giving the company a market capitalization of $992 billion.
The most interesting part of this story is that Nvidia achieved this feat thanks to artificial intelligence. The tech firm has been aggressively selling more of its GPUs as more companies adopt and develop AI technologies. As a result, Nvidia’s achievement proves the growing worldwide impact of AI, and you must adapt as soon as possible!
This article will discuss how Nvidia briefly became a trillion-dollar company. Also, I will explain why more people want graphics cards as the AI boom grows. Later, I will cover Nvidia’s other hardware and software products.
How did Nvidia reach the one-trillion-dollar mark?
— Reuters (@Reuters) May 31, 2023
Nvidia went through several ups and downs over the years. In 2020 and 2021, the demand for graphics cards significantly increased due to the cryptocurrency trend.
Many wanted to mine Bitcoin and other digital monies, which required powerful computers with top-of-the-line GPUs. However, demand dropped in 2022 when it and other firms shipped under 6.9 million desktop graphics cards.
That was when countries removed their pandemic restrictions, enabling people to resume regular activities. As a result, they spend less time in front of computers, reducing the demand for gadgets.
The global economic downturn discouraged people from investing in volatile assets like cryptos. Consequently, fewer people wanted to mine Bitcoin and other crypto assets at home.
Nowadays, Nvidia is doing better than ever due to artificial intelligence. ChatGPT’s ability to generate text with near-human style and accuracy amazed the world.
It has only been out for six months, yet it has left a massive worldwide impact on all facets of daily life. For example, more of our favorite apps, like TikTok and Snapchat, have been implementing AI chatbots.
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These products require graphics processing units in graphics cards because they are suitable for AI. They break down large datasets and process smaller ones simultaneously, enabling AI systems to function faster.
Nvidia enjoyed a booming start for 2023 as its shares soared more than 165%. Moreover, the skyrocketing AI trend turned it into the best-performing stock on the 2023 S&P 500 index.
KeyBanc Capital Markets Equity Research Analyst John Vinh praised Nvidia on Tuesday during an interview with Yahoo Finance Live. “It’s something that they have earned,” he said.
What are Nvidia’s other projects?
Nvidia has been busy churning out more products and services for the world. For example, the tech giant released its RTX 40 series graphics cards last year. They provide unparalleled visual quality and performance, especially if you activate the “AI-powered performance multiplier” called DLSS 3.
It stands for “Deep Learning Super Sampling 3” and has two components: DLSS Super Resolution and DLSS Frame Generation. The former reconstructs three-fourths of each on-screen frame.
Then, the Frame Generation AI network decides how to use in-game and frame data to produce the next frame. DLSS 3 greatly expands the number of frames a graphics card can render.
It also works alongside NVIDIA Reflex, which synchronizes the CPU and GPU. As a result, DLSS 3 and Reflex significantly improve how video games look and run.
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The company also released a new AI feature a few days ago called NVIDIA ACE. It released a demo video on YouTube, showing how it enables non-playable characters (NPC) to roleplay.
Most video games script dialogue for background characters to help players immerse themselves into virtual worlds. However, they are repetitive, spouting the same lines repeatedly.
In contrast, the new tool enables NPCs to produce natural-sounding dialogue based on preset personalities. As a result, players can converse with non-playable characters almost like regular people.
Nvidia briefly became a $1 trillion company during stock trading Monday. Later, the US-based tech firm dropped to $992 billion. It may permanently become a trillion-dollar company soon.
The world continues to adopt artificial intelligence into every facet of our lives. As a result, Nvidia will be selling more graphics cards and gaining more market value soon.
This tech company proves AI brings success, so ensure you learn how to use it to your advantage. Start by learning more digital tips and trends at Inquirer Tech.