The American processor manufacturer Nvidia entered the elitist club of companies with more than a trillion dollars of market capitalization on May 30 on Wall Street, after its shares skyrocketed after announcing business results in which it highlighted the returns from its commitment to artificial intelligence (AI).
Nvidia, founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Priem with the aim of promoting the design of three-dimensional computer graphics for the development of games and multimedia applications, thus enters the reserved club mostly reserved for technology companies such as Apple, Amazon or Microsoft.
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Over the years, Nvidia, which has so far declined to comment on its entry into the club of “billionaires”began to invest in applications to speed up computers, optimize graphic processing, develop artificial intelligence or improve the capabilities of the metaverse.
AI, “turning point of a new computing age”
Precisely, his commitment to AI has been at the origin of his latest push on the Wall Street Stock Exchange.
“AI is driving change in every industry around the world. As businesses become increasingly data-driven, demand for AI technology grows (…). AI technology is providing businesses with the computing power, tools and algorithms your teams need to do their lives’ work”assures the company on its website.
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This weekend in Taiwan, Huang, the company’s current CEO and himself a Taiwanese, insisted that “accelerated computing and AI mean a reinvention of computing”.
“We are at the tipping point of a new computing era with accelerated computing and AI that has been embraced by nearly every cloud and computing company in the world”Huang said at an event in Taipei where he unveiled the DGX GH200, a super computer for generative AI model development.
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Business results for the first quarter of the year
Nvidia’s shares skyrocketed after announcing a net profit of 2,043 million dollars (1,899 million euros) on May 24 in the first quarter of its fiscal year, 26% more than in the same period of the previous year, driven by AI development.
Since the start of the year, Nvidia shares have skyrocketed 181%.
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With this valuation, Nvidia, whose shares rose 5.6% today at half-time, thus becomes the first US processor manufacturer to exceed this mark.
Nvidia’s shares, which reached $411 at 12:00 local time (16:00 GMT), must remain above $404.86 for its market capitalization to continue above one trillion.
In the first three months of the year, the technology company had a turnover of 7,192 million dollars, down 13% year-on-year, but its core business, data centers, remained strong and posted record revenue.
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As the company stated at the time, data centers are benefiting from the growing demand for generative AI and extensive language models that use processors based on the Hopper and Ampere computing architectures of
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“The computing industry is going through two simultaneous transitions: that of accelerated computing and that of generative AI”Huang said already then.
“The installed infrastructure of global data centers, valued at three trillion dollars, will transition from general use to accelerated computing as companies rush to apply generative AI in every product, service and corporate process”he added last May.
EFE
