By CHRIS ILLING
CCO Activ Trades Corp
The chip company, Nvidia, is benefiting massively from the boom in artificial intelligence (AI). The boom in AI gives the chip and graphics card manufacturer a boom in orders. The technology heavyweight's stock rose by almost 30 percent on Thursday last week. Nvidia trumps Apple's previous daily record on Wall Street.
With its sales forecast, the graphics card specialist exceeded the average expectations of the analysts by around 50 percent. Nvidia chips and software are well suited for applications based on artificial intelligence. They are now geared even more towards AI applications.
NVIDIA is one of the largest developers of graphics processors and chipsets in the world. Their line of products range from graphics processors or graphics cards to notebooks, network infrastructure and solutions for self-driving cars. Thus the graphics processors are used for a range of applications such as gaming, digital image processing and Internet and industrial design.
The company was founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Priem. In 1999, the company released the GeForce 265, the world's first graphics processor. The GeForce 265 could process 10m polygons per second. Now, modern graphics processors process more than seven billion polygons per second.
At $12 per share, the company announced its first public offering and has since been listed on NASDAQ. Nvidia then announced sales of around $11bn for the quarter running until the end of July. Analysts had expected an average of around $7.2bn. The group is expanding rapidly, and investors responded enthusiastically. Nvidia's stock jumped nearly 30 percent during the final two trading days last week and hit a new all-time high of $390. With a year-to-date gain of more than 180 percent, Nvidia shares lead the list of winners in the Nasdaq 100. Since the interim low in October, the stock has tripled.
Nvidia's stock market value rose by almost $210bn on Thursday last week. That's the largest one-day gain a privately listed company has ever posted. The previous record is held by Apple, which in November 2021 increased its market value by $191bn within one day. They are followed by Amazon ($190bn in February 2022), Microsoft ($150bn in March 2020) and Tesla ($143bn in January 2022).
Most recently, Nvidia's stock market value was around $940bn. With a valuation of almost $3trn, Apple is still the most valuable private stock exchange company in the world.
On balance, Nvidia ended the quarter with a profit of $2.04bn, up from $1.62bn a year earlier. In recent months, the chatbot ChatGPT and software that can generate images based on text descriptions have triggered a new AI hype. Many companies want to keep up with such applications, which increase the need for specialised technology in data centres. The savvy investor is keeping an eye on how AI is shaping the investment world.
The US stock market was closed yesterday due to Memorial day in the US.
Comments
ThisIsOurs 11 months, 1 week ago
"AI experts have said society is still a long way from developing the kind of artificial general intelligence that is the stuff of science fiction; today’s CUTTING EDGE chatbots largely reproduce patterns based on training data they’ve been fed and do not think for themselves.Still, the flood of hype..." -cnn.com
It never ceases to amaze me how some Bahamians especially politicians latch onto buzz phrases as if it suddenly makes them enlightened. Everybody is now talking about how they'll use AI to do this and that and how we need to get ready for AI, another "opportunities for young people dead end, when at best what todays AI could be doing is reading patterns. Stuff that's been done for decades. The things Bahamians need to be concerned about are, the ability to read, do math and basic digital skills. Lacking those skills will wipe out their jobs way before any AI robot starts pumping gas or serving food.
In 20 years maybe someone will create a sentient robot, not today
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