Tech, more specifically A.I. has clearly become the new frontier in financial markets, and NVIDIA the Great has been crowned king of the semiconductors.
NVIDIA’s 25% rise – $200 billion in market value – in a single day will inspire a new generation of investors to go ‘all in’ as it always does.
The fact is that NVIDIA is the world’s best maker of the computer chips that power today’s growth of generative A.I., that new phenomenon of computers being able to generate images and texts in response to prompts from humans.
Still in its infancy, generative A.I. has educators across the world scratching their heads on how to deal with students using it for homework and undergraduate assignments.
It also has couples using generative A.I. to redesign their back garden.
NVIDIA the Great and the future of generative A.I.
It is a safe bet that NVIDIA will power future iterations of the global computer infrastructure for at least the next decade and has already cemented its market share of generative A.I. chips to the tune of 80%, increasing to 90% in 2024 according to HSBC:
we’re shocked by Nvidia’s pricing power on AI chips that we see driving earnings upside, higher valuation… while the overall [total addressable market] of generative AI still remains difficult to forecast, Nvidia has the highest potential leverage from a hardware perspectiveFrank Lee, HSBC Head of Technology
BT has already openly admitted that they are letting go of 50,000 jobs over the next 10 years, 10,000 of which will be replaced by A.I.
It is clear that the existing computer infrastructure powering the global economy will now be subject to nothing short of a revolution, as the CEO of NVIDIA himself notes:
A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.Jensen Huang, CEO, NVIDIA
NVIDIA is selling pick axes and tents to gold prospectors, it’s just that NVIDIA’s pick axes are fashioned from the strongest metal, their tents from the toughest of fabric.