American multinational Technology company, Nvidia, has overtaken e-commerce giant Amazon, in market value.
The world leader in Artificial Intelligence Computing on Tuesday hit a market valuation of $1.78 trillion, versus Amazon’s valuation of $1.75 trillion. This saw the company become the fourth most valuable US-listed company, driven by the increasing demand for its chips used in AI computing.
Despite Amazon’s significant performance, Nvidia’s stock rose by over 246% in the past year, as analysts predict a 118% annual sales growth for Nvidia, with the next earnings report due on February 21, 2023.
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Speaking on Nvidia’s recent increase in valuation, Head of Equity at Saxo Bank, Peter Garnry said,
“Amazon was actually among the winners in the current earnings season as Amazon’s outlook is improving. Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centers”.
It is worth noting that Nvidia has been an outstanding performer this year, adding more than $560 billion, nearly the entire value of Tesla to its market cap, and rising just under 50% from late December.
After remaining range-bound in the second half of 2023, Nvidia’s shares have been surging in the new year, amid signs that demand remains strong for its chips used in data centers for complex computing tasks required by Al applications.
Notably, the AI company has added about $600 billion in market value so far this year, more than it gained in the last seven months of 2023.
Nvidia has had complete freedom of the AI landscape, as they have taken advantage of business-savvy investments and focused approaches that enable them to dominate their market.
This has led to a surge in artificial intelligence investment from several tech companies, particularly from large cloud-computing-service providers, which has accelerated interest in Nvidia, given its dominant market position in the chips that drive Al technologies.
The GPU maker has been at the forefront of the Al industry since the generative Al boom, with its advanced Al chips powering Al products and services. According to a report by Reuters, Nvidia will establish a new business unit for custom Al chips. As companies look for alternatives to Nvidia’s standardized Al chips, it potentially opens the door for competitors that can help create these custom chip designs.
Nvidia’s custom chip unit will try to prevent market share leakage by working with customers looking for alternatives to Nvidia’s standardized chip products.
As the world leader in Artificial Intelligence Computing continues to forge deeper into the AI space, it recently released an artificial intelligence (Al)-powered chatbot called Chat with RTX that runs locally on a PC and does not need to connect to the Internet.
Calling it a personalized Al chatbot, Nvidia released the tool on Tuesday. Users intending to download the software will need a Windows PC or workstation that runs on an RTX 30 or 40-series GPU with a minimum of 8GB VRAM. Once downloaded, the app can be installed with a few clicks and be used right away.