Nvidia has witnessed a remarkable surge in its stock value, soaring nearly 30% after announcing its first-quarter financial results. This tremendous growth propels Nvidia into the exclusive ranks of U.S. publicly traded companies with a market valuation of $1 trillion. Such an achievement solidifies Nvidia's position alongside tech giants like Apple, Microsoft, Alphabet, and Amazon, all driven by the insatiable demand for high-performance AI chips in the era of generative AI.
The company's hardware and software solutions have played a pivotal role in fueling the deep learning revolution, which, in turn, has driven the exponential growth of GPU demand. As large language models, such as GPT, have become more powerful, the need for ever-increasing GPU capabilities has surged. Today's massive generative AI models require thousands of GPUs to operate, and Nvidia firmly dominates the GPU market, holding approximately 88% of the market share, as per Jon Peddie Research.
