Nvidia’s shares have risen 2.5% this year and are breaking new records. The giant’s market capitalization reaches $1.83 trillion, overtaking Alphabet and Amazon. Does Nvidia stand a chance of maintaining such a result?
Why such a large jump in value?
Experts believe that artificial intelligence will become a ubiquitous technology that we will use every day in the coming years. AI needs powerful computing power for its development and training. The ideal devices for this are graphics cards, and Nvidia produces some of the best chips of this type in the world. The direction in which the development of artificial intelligence is going may herald that Nvidia’s shares will soar.
Nvidia shares aren’t the only ones gaining from AI development
Nvidia, despite the fact that it manufactures graphics cards, is not the maker of the chips, which are the most important part of these devices. The company involved is TSMC. It is the world’s largest manufacturer of silicon chips. According to available data, TSMC earned more than $69 billion in 2023, which is an absolute success. This just goes to show the impact that artificial intelligence is having on the development of semiconductor manufacturers.
Demand for the most advanced GPUs for data centers is expected to increase due to the shift to larger artificial intelligence models. Chip companies are increasing their capacity in order to be prepared for orders that may increase up to several times in the future.
Are we facing a crisis and a shortage of graphics cards in stores? Rather not, as this type of application uses slightly different chips than regular home computers. So there is unlikely to be a situation where store shelves will be glowing with emptiness because someone bought up all the copies in order to train AI.
Przeciętny człowiek o przeciętnych umiejętnościach i przeciętnej inteligencji. Zazwyczaj udaje mądrzejszego, niż jest w rzeczywistości i wykłóca się o każdy najdrobniejszy szczegół.
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