Chipmaker Nvidia is taking advantage of the rise of artificial intelligence. It is now the second most valuable public company, behind Microsoft.
The firm reached a $3 trillion market capitalization milestone on Wednesday after its shares rose more than 5 percent. At the close of the market, Nvidia had a market value of 3.0 billion dollars, compared to that of Apple, which stood at 2.9 billion dollars, and Microsoft, which is the most valuable publicly traded company, has a market cap of $3.15 trillion.
Shares of the Santa Clara-based chip maker show the momentum the company has achieved this year by having an estimated 80 percent market share of data center AI chips.which are attracting billions of dollars in spending from large cloud providers.
That’s the main reason for the valuation, Nvidia has driven the growth of cloud companies, revenue in its data center business, which includes its GPU sales, increased 427 percent from the previous year and is close of 86 percent of the company’s total sales.
The other effect that the company, which was founded in 1993 and focused mainly on games, has managed to take advantage of has been its disruptive bets, recently the company focused on cryptocurrency mining chips and cloud subscription services.
NVIDIA CEO Jensen Huang
Photo:Mandel Ngan / AFP
The idea is that the Rubin platform will succeed the current Blackwell platform, which supplies chips for data centers and which the company announced as a debut last March. Nvidia called it the “most powerful chip in the world” at the time.
Then by 2027, the company plans to launch the Rubin Ultra in 2027, which indicates that this will be the company’s new trend: first the launch of a new architecture and then the Ultra version is made the following year.
“Today we are on the cusp of a major change in computing,” Huang said during his speech at the opening of Computex, a technology event organized annually in Taiwan. “The intersection of AI and accelerated computing will redefine the future,” added the manager.
Nvidia’s competition is growing, and major competitors AMD (AMD) and Intel (INTC) are also in the race for introducing new products with those characteristics.
The company’s focus
“The future of computing is accelerating, with our innovations in AI and accelerated computing, we are pushing the limits of what is possible and driving the next wave of technological advances,” said the executive.
According to Huang, there is a roadmap for new semiconductors that will arrive at a rate of one year.
“Our company has a one-year rhythm. Our basic philosophy is very simple: build full scale data center, disaggregate and sell parts to you at a one-year pace and push everything to the technological limits,” he explained.
Furthermore, “accelerated computing is sustainable computing,” he emphasized, describing how the combination of GPU and CPU can deliver up to 100x speedup while increasing power consumption by a factor of three, achieving 25x more performance. per watt than CPUs alone.
“The more you buy, the more you save,” said Huang, highlighting the significant cost and energy savings for the sustainability of the sector.
