On Monday, October 14, Nvidia shares closed at a record high as Wall Street is currently preparing for earnings season.
It is worth noting that the mentioned result is also largely because the leading clients of the specified company report their plans on spending on artificial intelligence infrastructure. Nvidia develops graphics processing units, which are necessary for training and ensuring the process of subsequent operation of machine intelligence systems.
On Monday, the value of the company’s shares rose 2.4% and closed at $138.07 per equity. In this case, the previous maximum was exceeded, which was $135.58, and was recorded on June 18. For the year the company’s shares have risen by almost 180%. Over the period from January 1, 2023, to today’s date, the corresponding indicator has increased more than nine times.
Nvidia is one of the main beneficiaries of the so-called artificial intelligence boom, which began after OpenAI presented the chatbot ChatGPT in November 2022, which impressed the consumer audience with its cognitive abilities. Within the framework of a symbolic manner of explanation, the company’s activities can be described as supplying the picks and shovels for the gold rush of machine intelligence.
Technology giants such as Meta, Google, Microsoft, and Amazon are purchasing graphics processing units from Nvidia in huge quantities. These products are needed by the mentioned companies to build ever larger clusters of computers for their advanced artificial intelligence work.
Mizuho analysts said that Nvidia accounts for a huge amount of the billions of dollars that top players in the technology sector spend annually on the development of AI. Currently, this company controls about 95% of the market for machine intelligence training and inference chips.
Nvidia’s revenue has more than doubled in each of the last five quarters. Moreover, during three of the corresponding periods, the mentioned indicator tripled. It is expected that by the end of 2024, the pace of this upward dynamic will slow down slightly. LSEG’s preliminary estimate stipulates that Nvidia’s revenue in the quarter ending in October will grow by about 82% and reach $32.9 billion.
The company characterized as insane the demand for its next-generation graphics processing units called Blackwell. The firm expects this product to generate revenue of several billion dollars in the fourth quarter.
Nvidia’s market capitalization has topped $3.4 trillion. Currently, this brand is the second-most valuable publicly traded US company. The leader in terms of the corresponding indicator is Apple, whose market capitalization is approximately $3.55 trillion. Currently, Nvidia, Apple, and Microsoft account for about a fifth of the S&P 500’s weight. These companies have a hefty impact on the index’s day-to-day gains and losses.
With a high degree of probability, Nvidia’s success will continue, as the artificial intelligence industry is on an intensive development trajectory. The company provides a kind of material platform for this process and has the highest level of competitiveness in the relevant market.
It is worth noting that against the background of the technological evolution of AI and its proliferation, the issue of cybersecurity is relevant. Scammers also have access to artificial intelligence, which is why their activities have become more sophisticated. One of the tools to counter the mentioned threat is the personal awareness of users. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device.
