As the Chief Executive Officer of Nvidia, Jensen Huang has seen the spectacular ascent of the corporation.
On Tuesday, the share price of the company reached an all-time high, which resulted in the chip maker Nvidia being the most expensive individual firm in the world and becoming the most valuable company overall.
The price has almost doubled since the beginning of this year, and it is presently worth $3.34 trillion, which is comparable to £2.63 trillion. This is the current value of the asset.
The value of the stock increased to around $136 as the trading day drew to a conclusion, which is equivalent to a 3.5% gain. This makes it more valuable than Microsoft, which is a technological powerhouse that is comparable. As the month progressed, it overtook Apple in terms of market share.
The extraordinary growth of the Californian firm has been propelled by its control of what some people call to as the “new gold or oil in the technology sector” — chips that are necessary for artificial intelligence (AI). These chips are essential for the creation of new technologies.
A prognosis about the industry’s continuing growth was made by Chris Penrose, who is the global director of business development for telecom at Nvidia. He made this statement when he was speaking at an event that was held in Copenhagen.
According to his perspective, “The journey toward generative artificial intelligence is really transforming businesses and telcos around the world.”
The trip that we are about to embark on has just begun
At Wedbush Securities, investors were in accord with the statement.
In a letter that was sent earlier this week, the firm expressed its belief that “we believe over the next year the race to $4 trillion market cap in technology will be front and center between Nvidia, Apple, and Microsoft.” This statement was made in addition to the fact that the company is of the view that “we believe”
Notwithstanding this, a number of opponents have questioned whether or not Nvidia would see big future gains, taking into consideration the increasing amount of competition that the firm is experiencing.
Do not get off your feet
On the other hand, the fact that it has grown in such a tremendous way is not something that can be disputed.
Over the period of eight years, the value of the stock was less than one percent of what it is at the present time.
Nvidia’s worth at the time was generated from its competition with AMD, which was involved in a fight to manufacture the most powerful graphics cards. This competition was the source of Nvidia’s value.
On the other hand, it has been able to enjoy the advantages of a boom in demand for processors that are capable of training and running generative artificial intelligence models over the course of the last several years. The most well-known example of this is ChatGPT, which is developed by OpenAI.
Additionally, the corporation was able to gain significant profits from the rush to mine Bitcoin in the year 2020, which led to a significant rise in the number of sales of its graphics cards.
In recent years, Jensen Huang, the Chief Executive Officer of the tech giant, has steadily become more visible. This increased prominence is a reflection of the stratospheric rise that the firm has experienced.
The chief executive officer of Meta, Mark Zuckerberg, referred to the 61-year-old electrical engineer, who is recognized for his signature leather jacket, as the “Taylor Swift of technology” because to the celebrity level he has achieved.
The fact that he is so well-known in Taiwan, the country in where he was born and nurtured, is one of the reasons he has received such widespread recognition. Fans in Taiwan treat him like a rock star, posing for pictures and even asking him to sign different parts of his body. He is a rock star.
What is it about the one who started Nvidia that makes him the “Taylor Swift of technology”?
In the field of artificial intelligence, there is a great deal of rivalry. There are a number of tech giants that are striving to build a product that is on par with the greatest in the world. Some of these companies are Meta, Apple, Microsoft, and Alphabet, which is the business that controls Google.
For Nvidia, which not only creates its own artificial intelligence technology but also controls the vast majority of the market for AI chips, this competition presents an opportunity for the company to acquire a competitive advantage.
This list displays the top ten most valuable companies, as determined by their market capitalization.
During the course of the last several years, Nvidia has achieved sales and profit figures that have been higher than the projections made by a considerable number of experts.
In May, Ben Barringer, a technology analyst at Quilter Cheviot, said that the company had “once again cleared a very high hurdle” after the publishing of its most recent batch of financial data. This statement was made in response to the most recent piece of financial data.
An further statement that he made was that “demand is not showing any signs of switching off either.”
There is, however, a subgroup of individuals who are more cautious than others.
In February, Sandeep Gupta, a credit analyst at Barclays, issued a warning that it would be difficult for Nvidia to maintain its considerable market share due to the increasing number of rivals. In addition, he questioned the manner in which Nvidia’s customers would generate revenue from artificial intelligence software.
