Tech businesses of all sizes are rushing to incorporate generative AI capabilities into their products, which has pushed Nvidia’s valuation to a new all-time high of $1 trillion. Nvidia’s chips make it a significant supplier for companies seeking to develop something with AI, and AI tools dominated recent presentations at both Google I/O and Microsoft develop.
NVIDIA based in Santa Clara, California, has become the ninth publicly traded firm to reach a market cap of $1 trillion, joining the ranks of other tech titans including Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL).
Nvidia made over $2 billion in profit during their most recent fiscal quarter. Before the markets for PC gaming and cryptocurrency mining began to decline in 2022, Nvidia’s company surged early in the pandemic due to the shortage of GPUs.
CEO Jensen Huang revealed in the previous fall that the company had manufactured too many gaming GPUs and was therefore had to sell them at a loss. The view was less optimistic in January, when Huang downplayed the possibility of Nvidia’s data center development, despite ChatGPT’s widespread media coverage; however, the most recent report indicated a new record in data center revenue, so things are looking up.
Nvidia showcased its Avatar Cloud Engine (ACE) for Games, which uses natural language for both input and responses, and its new DGX GH200 supercomputer, which is based on its latest Grace Hopper Superchip and is capable of a total of one exaflop of AI performance, during the keynote presentation at Computex 2023 last weekend.
NVIDIA Looking to Work with Intel for its Chips
NVIDIA CEO Jensen Huang said the company is looking to diversify its chip production and that recent tests of a chip built by Intel on the company’s next-generation process node had shown promising results. His remarks followed a number of questions about NVIDIA’s efforts to maintain supply in the face of rising demand for AI processors and the fact that all of the company’s most advanced GPUs are produced by a single supplier in Taiwan, TSMC.
You know that we also manufacture with Samsung and are open to manufacturing with Intel. Pat [Gelsinger] has said in the past that we’re evaluating the process, and we recently received the test chip results of their next-generation process, and the results look good.NVIDIA CEO, Jensen Huang
NVIDIA’s supply chains could be disrupted if tensions between Taiwan and China continue to rise, so the company may be forced to consider switching to Intel. Both TSMC and Intel are currently building manufacturing facilities in the United States. In contrast to NVIDIA, TSMC will only produce the older 5nm process in the United States due to the intense competition in the region. If Intel were to offer superior nodes, it might gain an advantage.
Nvidia’s growth will be pushed higher as the demand for AI continues to rise. The market value of NVIDIA should rise, while supply constraints shouldn’t be a problem. Neither NVIDIA nor Intel has confirmed that they would be switching chip manufacturers, and testing is still ongoing. Please share your thoughts on the news with us, and we will keep you posted on any relevant developments.