AI hype leaves gamers out in the cold
Nvidia has grown into one of the largest companies in the world. The AI hype is already making Nvidia much less dependent on gamers. Upgrading data centers is now the priority, as confirmed by Nvidia boss Jensen Huang himself.
Nvidia: data centers instead of gamers
Nvidia is best known for its graphics cards, and from there it’s not far into the gaming world. It can at least be doubted whether the focus on the best graphics cards for gamers will remain. Nvidia boss Jensen Huang himself says that his company has hardly changed Data center upgrade contracts can save.
For the ongoing AI hype, the manufacturers of generative language and image models need an incredible amount of computing power, which Nvidia is happy to provide. The business figures just presented show how successful the company is. The outlook is even better than the current figures: Nvidia expects one in the current financial year Sales of around 11 billion US dollars. Analysts had expected $7.2 billion.
The rosy outlook for Nvidia has sent its share price soaring. A new all-time high was reached after the Course jumped by up to 30 percent rose. The current market capitalization of around 960 billion US dollars makes Nvidia the fifth most valuable company in the world almost overnight (source: CNBC).
AI tools like Google Bard require a lot of computing power:
Nvidia becomes a trillion dollar company
If Nvidia develops as forecast and the price development continues, one could soon to become a trillion dollar company. In that case, Nvidia would be joined by other heavyweights like Apple, Microsoft, Alphabet, and Amazon.
That company from this exclusive club but also fly out again Tesla and Meta (Facebook) have shown. Both companies would now have to nearly double in size to get back to $1 trillion in market cap.
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