nvidia Fly to the stock market. Shares of the processor maker posted record growth, up more than 24%, Thursday thanks to a forecast Increase in sales Every three months due to the chips that power the systems artificial intelligence. The volume of new orders is due to the reorganization of data centers around the world, Nvidia CEO Jensen Huang explained during the presentation, which was attended by experts and lenders.
Nvidia was valued at $755 billion at the close of trading on Wednesday evening. The next day it reached a capitalization of nearly 940 billion, which then rose to more than 960 over the weekend. one billion (one billion).
Nvidia is flying and making the stock market fly
Demand for the company’s chips, which are used to quickly process the large amount of information required to run artificial intelligence systems, has also increased thanks to the cryptocurrency boom. Indeed, digital assets need massive computing power, on par with generative artificial intelligence.
The rise in Nvidia shares acted as a catalyst for the entire market, pushing the US stock index S&P 500 (Standard & Poor’s 500) up about 1%. During 2023, despite the microchip war with China, the stocks of the US tech giant have practically doubled in value.
Nvidia is ready to hit on Google
Moving bets can come from companies like Nvidia An unprecedented amount of money before. Analysts expect the US company to continue to grow by up to 38%, also outperforming all forecasts for quarterly sales and profits, “in a surprising way,” as noted by the same executives at the graphics card and CPU giant.
If Nvidia shares were to be worth $600, it would also overtake Amazon, and become the fourth largest company in the world, behind Alphabet, the acronym on which the empire relies. Googlewhose capitalization exceeds 1500 billion dollars. It is already working on the AI front with ChatGPT’s main competitor, Google Bard.
Effects on the AI economy
It is not clear how investments in AI might affect international finance and the resilience of the economy. There are those who fear that the rise in Nvidia shares is further evidence of one of the two small bubble Which, in its course, will sooner or later explode on its own without special consequences for national systems.
Instead, economists at Goldman Sachs predicted that tools that support and build on generative AI could drive benefits for the global economy, estimated at $7 billion. Figures that attest to the high expectations that investors place in new technologies.
But these are just hypotheses. Of course we only know that the race towards artificial intelligence is just beginning, and as Bill Gates predicted at unexpected times, big tech companies will struggle to excel and industry monopoly of new gold. Pioneers of these technologies are already seeing their shares rise, despite legitimate concerns about the consequences AI could have on the world of work.
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