Stock markets - Nvidia exceeds the $3 trillion financial milestone.
The surge in AI technology has propelled chipmaker Nvidia past the $3 billion market value in stock, with a 5% increase in share price to $1224.40 pushing it into this league. Joining Microsoft and Apple as the most valuable publicly traded companies, Nvidia's position is solidified through the growth of data center AI integration, where their chips play a pivotal role.
Revenue has surged for the company following this growth, skyrocketing from $7.2 billion in the previous quarter to $26 billion - an astonishing 262% increase. And the good news doesn't stop there; supply shortages for their new chip systems are expected to continue into next year, further bolstering the demand. The stock price has shot up by nearly 150% since the start of this year as a result.
Nvidia's tech initially specialized in graphics cards, but its applications within AI training proved highly effective. Nvidia's chips now serve as crucial tech for the future of AI, with the company profiting not only from chip sales but also the business in accompanying software and services.
Nvidia's leader, CEO Jensen Huang, highlights that their technology is no longer just limited to AI training, but also the operation of AI applications. This shift may result in a more stable business model, as training requires immense computational power only once per AI model, while operations in AI applications are a steady and ongoing process. Huang predicts that AI will produce all future content instead of extracting it from databases.
