Nvidia’s On An Artificially Intelligent Tear

Nvidia’s On An Artificially Intelligent Tear
Daniel Johnston

6 months ago2 mins

What’s going on here?

AI trailblazer Nvidia did a victory lap this week, showing off an arsenal of cutting-edge AI offerings.

What does this mean?

Just last week, Nvidia was popping champagne over its stellar results, thanks in large part to some lucrative AI exploits. And now the silicon maestro has doubled down, eager to prove that it’s no one-hit-wonder in the AI arena. See, Nvidia revealed its got its digital fingers – its, ahem, digits – in every AI pie out there, from robotics design to gaming and ad services (including a cozy partnership with ad giant WPP). But the real jaw-dropper is its brand new AI supercomputing platform, set to help tech whizz-kids concoct the next ChatGPT. Alphabet, Microsoft, and Meta are expected to be among the first users of that service – but Nvidia’s planning to build its very own supercomputers for other tech clients to use too.

Nvidia chips

Why should I care?

For markets: Taking a big byte.

Nvidia’s AI bravado hasn’t gone unnoticed by Wall Street. The firm’s stock skyrocketed a whopping 188% this year, hitting the milestone of a cool $1 trillion valuation – a first for the whole chip sector. That means it’s already around twice the size of its closest rival, TSMC, and nipping at the heels of US tech giants like Apple, Amazon, and Alphabet. With analysts scrambling to calculate new price targets, Nvidia’s stock could even slip past both Amazon and Alphabet – if this optimism isn’t overblown.

Trillion dollar club

The bigger picture: Trickling down.

It’s not just Nvidia that stands to benefit from the rising tide: if you’re searching for other ways to profit, take a look at TSMC and ASML, the backstage crew powering Nvidia’s operations. See, Nvidia leans on TSMC – the chip-making virtuoso – for manufacturing. And TSMC relies on ASML, in turn, for its machines. If that’s starting to sound a lot like alphabet soup, just remember this: when Nvidia wins, they’re positioned to too.

Nvidia stock


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