Strong demand for artificial intelligence (AI) chips is pushing up the share price of Nvidia, a California-based microprocessor company. In recent hours it has managed to overtake Alphabet (the holding company that controls Google) and Amazon in terms of market capitalization.
Now Nvidia, born in the 1990s as a maker of video cards for gaming, has become one of the main drivers of artificial intelligence development and the third most capitalized company in the USA, behind only Wall Street giants Apple and Microsoft.
Obviously, the share price of the group from Santa Clara can fluctuate, but their rise over the past year reflects the strong investor interest in artificial intelligence systems. For the past year, Nvidia performed best among the “magnificent seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) with a total stock price increase of 223%. Nvidia’s powerful processors are suited specifically for developing software such as OpenAI’s ChatGPT. The lack of real competition in this particular sector leads to a rapid increase in demand for its processors. The strong competition that is being established in the field of artificial intelligence in general, with virtually every major technology company entering the field in the United States alone – Alphabet, OpenAI, Microsoft, Meta and Amazon – generates virtually unlimited demand.
The main competitors in the production of key chips for artificial intelligence are two other American companies, AMD and Intel. They are trying to enter this market, but it seems they are still far from troubling Nvidia, which will soon be launching a new H200 processor. This device has been announced as “revolutionary.” It will be even more powerful and will be able to “ensure artificial intelligence generation and high-performance computing workloads.”