Nvidia's AI Demand Boosts Market To $1T
Blog by Akash Sriram and Samrhitha A We are writing a blog. We are Akash Sriram and Samrhitha A. Our blog is about artificial intelligence. Artificial intelligence is the future. It is changing the world. We want to explore how. We will share our thoughts. And ideas about artificial intelligence.
Nvidia has joined the trillion-dollar club. It is the first chipmaker to do so. Nvidia is banking on a rise in demand for its AI chips. These chips are responsible for ChatGPT and other applications.
The shares of the gaming and AI chip company increased by 4.2%.
Taiwan Semiconductor Manufacturing Co Ltd is a big chipmaker. It's worth about $535 billion. It's the second-largest chipmaker in the whole world.
Meta Platforms Inc reached a trillion-dollar market value in 2021. It's worth about $670 billion at the latest check. Other U.S. companies in the same league are Apple Inc, Alphabet Inc, Microsoft Corp, and Amazon.com Inc.
Experts on Wall Street were amazed by Nvidia's forecast, describing it as "unfathomable" and "cosmological". As a result, they have increased their price targets in large numbers. The most optimistic price target valued the company at around $1.6 trillion, which is comparable to the market value of Alphabet, the parent company of Google.
The valuation is really high now. So, there is a lot of pressure to keep the growth rate high. This might create ups and downs in the share price. Susannah Streeter from Hargreaves Lansdown said this.
Last week, Nvidia surprised investors with their revenue forecast. The forecast was more than 50% higher than what analysts had predicted. This put AI in the spotlight.
Thomas Hayes, chairman at Great Hill Capital, said Nvidia is the top player in AI. People are starting to believe in the AI trend.
Last week, Nvidia's shares went up 25%. This caused AI-related stocks to go up too. Other chipmakers were boosted as a result. The Philadelphia SE Semicondcutor index reached its highest level in over a year on Friday.
Nvidia's value has reached $1 trillion. Technical traders and AI interests are responsible for this. It is also pricey. Jim Kelleher from Argus Research said this.
ChatGPT, which is owned by OpenAI, has become very successful. Big tech companies such as Alphabet and Microsoft are now interested in using generative AI. This kind of AI can talk like a human and create things like jokes and poetry.
Several reporters from different cities contributed to this report. Their names are Akash Sriram, Samrhitha Arunasalam Medha Singh, and Shashwat Chauhan. They are all from Bengaluru. The report was edited by Shounak Dasgupta.
