“Nvidia Joins a Very Select Club of World Ranking Champions”

PAmericans, don’t stop your kids from playing video games. At least if you want to grow the US economy. Known for over twenty years by all microcomputer hackers and fanatics World of Warcraft or counter strikeNvidia is an institution, with its chips and graphics cards that make it possible to get the bluff synthetic images that “gamers” love. Now it is a digital giant.

This Thursday, May 25, with exceptional sales forecast for the current quarter of more than 11 billion dollars (10.24 billion euros), it caused an extraordinary stir in the stock market. Its value now reaches 1000 billion dollars, which brings it into the very select club of world ranking champions, Google, Microsoft, Amazon or Apple.

California-based Nvidia will also be the first chip maker to cost that much. In one day, this Thursday, May 25, its market valuation jumped by almost $200 billion, more than the total value of its main competitors such as Qualcomm or Intel.

tangible reality

Why is there such interest? Again the ChatGPT effect. Demonstrating, with a highly publicized example, that AI was now a tangible reality sparked a flurry of investment across the digital world and beyond. Because behind this application is hidden both the victory of cloud technology, which makes it possible to provide remotely with all the necessary computing power, as well as the need for high-quality tools in this field. And that’s good for Nvidia, whose chips can greatly accelerate the computing capabilities of cars, as it already does in the field of images.

If this sudden frenzy recalls the folly of previous Internet bubbles, it’s based on a long-term bet. Digital has entered the third era. After the revolution of the Internet and the Internet, then smartphones and mobile applications, it was time for artificial intelligence.

And as always, the cards are dealt with winners and losers. The first period was dominated by Intel and Microsoft, the second by Google and Apple. Nvidia is making a name for itself in the new era of artificial intelligence. It won’t be the only one, Microsoft is well-positioned and a new cycle is beginning, hence the return of tech stocks to the stock market.