NVIDIA’s Stock Soars Up by 40%, All Thanks to Chat-GPT
Artificial intelligence is seeing a recent boom in its popularity due to the ease it creates in different aspects of work. The artificial intelligence algorithm Chat-GPT has been running on GPUs from NVIDIA to support the processing of data. Other photo/video/image generation tools are also highly dependent on processing power, which NVIDIA has a strong grip on. This extra strength of NVIDIA GPUs makes them way ahead of their competitors, mainly Intel and AMD.
Undoubtedly, NVIDIA’s Hopper H100 and Ampere A100 architectures make them the world’s fastest AI GPUs at the present time. Although the Russian and Chinese markets have prohibited the chips due to concerns about their possible use in military aid, the company is still selling updated variants in the Chinese market. NVIDIA is unable to sell these CPUs and graphics cards directly, however, they are still accessible via online shops like AliExpress and Taobao.
NVIDIA Stock Prices Rise
The same hardware used for AI on a small scale is also used by huge enterprises such as the automotive industry, data centers, and cloud providers. NVIDIA has a monopoly on the market, leaving its rivals well behind in terms of revenue. Due to increased demand, NVIDIA stock jumped by an astonishing 40% this month.
It is great that NVIDIA is using its long developed skill to earn and turn the company into a stable profitable business, The CEO, Jensen Huang reportedly added 5.1$ Billion USD to his wealth, all thanks to the development of AI and support of NVIDIA GPUs
Is This Short-Term?
Citi Analysts reported NVIDIA’s profits aren’t stopping soon. The Boom of AI has just started and will continue to grow with time, henceforth increasing the sales of NVIDIA. It is estimated that around $1 to $3 billion of Sales will be reported by NVIDIA in the coming year. This creates great room for the company to improve, especially in the recovery phase of the market.
