AI propelling Nvidia towards elite trillion-dollar club
May 26, 2023 - Shares in computer chip designer Nvidia have soared, taking the company’s valuation close to the trillion dollar mark as the artificial intelligence frenzy boosts demand for processors.
On May 25, shares soared 28%, to $392, making company worth over $950bn.
The surge was sparked by its latest quarterly results which were released late on May 24 and that were 53% higher than analysts projected.
Nvidia is now within touching distance of $1 trillion market value and it is poised to become only the ninth firm ever to hit that milestone.
Investors have singled out Nvidia as one of the big potential winners in AI, following the viral success of the ChatGPT chatbot and other popular tools. The company’s chips excel at parallel processing, which makes them well suited for training software by bombarding it with data.
ChatGPT was trained using 10,000 of Nvidia's graphics processing units (GPUs) clustered together in a supercomputer belonging to Microsoft.