Nvidia Has Become The World’s Second Most Valuable Company After Apple After Apple, the chip manufacturer Nvidia has become the second most valuable company in the world. After the stock price increased by five percent on Wednesday, Nvidia became worth more than 30 trillion 10 billion dollars.
Earlier, Apple crossed the 30 billion dollar figure. Even now, with $195.87 per share, the total value of Apple Inc. is $30 billion. After increasing by 1224 dollars per share on Wednesday, Nvidia has been added to the company’s stake worth 30 billion. Now Microsoft is at the top with a 30 trillion 15 billion dollar value.
Lately, the price of Nvidia has also skyrocketed after the discussion of artificial intelligence. Nvidia has been providing a ‘flagship H100 chip’ to companies working in the AI field. Investment in the AI sector is increasing significantly.
In May 2023, Nvidia became a company worth 10 billion dollars. Then last February alone, the value of this company reached 20 billion dollars. Within four months, the company’s share price has increased by 10 billion dollars.
What is Nvidia? How did it become the most valuable company in the world?
‘Nvidia’ is a familiar name for those who are interested in the technology sector, especially those who embrace AI. Now Artificial Intelligence (AI) has brought this company to the peak of discussion.
ChatGPT is behind the discussion of Nvidia, famous for computer chip manufacturing and distribution.
Nvidia was founded in 1993 by three computer chip engineers. They had already predicted the need for powerful chips for computers.
Later in 2000, the company signed a contract to manufacture chips for Microsoft’s Xbox gaming console. Since then, Nvidia has been expanding into the video game market. Nvidia has captured the market not only in video games but also in the film, television, and music industries.
AI technology
Training an AI model requires a large amount of memory storage. As a result, the demand for computer chips is increasing. Lately, Microsoft’s Bing, Google’s Gemini, Meta’s Lama 3, and OpenAI’s ChatGPT are competing fiercely.
So they are focused on making their AI tools powerful. For this, Nvidia provides them with the necessary chip. For this reason, when the demand for chips increases, the company price is also increasing.
It is said that a set of eight of the most advanced chips to be prepared by Nvidia will cost three hundred thousand dollars. Such companies have to purchase thousands of chips to train their chatbots. In this way, large companies are losing a lot of money due to having to depend on Nvidia for chips. Therefore, it seems that big companies will focus on manufacturing chips themselves to cut costs.
For years, Google has been working on the development of its own ‘tensor processing unit’, while companies like Microsoft and Amazon are also focused on manufacturing their own chips.
Nvidia said that it is preparing to release a new AI chip every year. The company is expected to move forward with its new plans by releasing the Cakewell B200 GPU this year.