Nvidia surpasses trillion dollars of stock market value due to artificial intelligence

Jensen Huang has become this week the big star of the Computex Taipei 2023 fair, held in Taiwan. Taiwanese by birth and American by adoption, Huang is the head of the fashion company in the computer world thanks to the usefulness of its powerful microprocessors for artificial intelligence. When in Taiwan it was already dark, the US stock market has opened its doors and Nvidia has entered the select club of the trillion dollars (930,000 million euros at the current exchange rate).

Nvidia thus becomes the fifth most valuable private company in the world. The list is headed by Apple, with 2.8 billion dollars. The second is Microsoft, with about 2.5 billion, followed by Alphabet, with almost 1.6 billion and Amazon, with 1.3 billion. All four are technology companies, all four are technology companies and all four are linked in one way or another with artificial intelligence. There is another firm in the trillion-dollar club, the state-owned oil company Saudi Aramco, but it has little capital floating on the stock market and its market value is less representative.

There are other companies that have overcome that barrier, but then have lost much of their value. Meta Platforms, the group that owns Facebook, Instagram and WhatsApp founded by Mark Zuckerberg, got it in June 2021, but is now worth about $690 billion. Tesla achieved that milestone in October 000, but is now worth about $2021 billion.

Nvidia presented on Wednesday of last week some good results of the first quarter, but above all, very powerful forecasts for the second that completely surprised the market. It announced a revenue forecast of about $11 billion, crushing Wall Street's $000.7 billion forecast. The company invoices with very high margins, so that translates into a great increase in profitability.

"In the more than 15 years we've been doing this work, we've never seen guidance like the one Nvidia just presented with a second quarter outlook that's clearly cosmological and shattered expectations," Bernstein analysts wrote in a report to clients. The increased use of tools such as Open AI's Chat GPT and the race to stay ahead of the burgeoning technology increases the demand for its microprocessors exponentially.

After publishing those results and forecasts, its shares soared around 25%. The increase in value in one day was 183.800 billion dollars, the third largest in the history of the Exchange, only behind Amazon's 191.300 billion on February 4, 2022 and the 190.900 billion that Apple revalued on November 10, 2022. Nvidia's rise spread to other stocks in the microprocessor, technology and artificial intelligence sectors.

In addition, this week at the computer fair in Taiwan, Nvidia has signed new alliances in artificial intelligence and has announced the launch of a supercomputer that serves as a platform for artificial intelligence tools called DGX GH200 with the idea that it will serve companies to create models of the type of ChatGPT.

Founded in California in 1993, Nvidia has pioneered the graphics processing of computers and video game consoles. In 1999, Nvidia invented the GPU, the graphics processing unit, which laid the foundation for a profound change in the industry. To have increasingly better images, it has been exponentially increasing the power of its processors, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, the metaverse, cryptocurrencies, autonomous driving, image recognition and artificial intelligence.

Jensen Huang, 60, founded the company with Chris Malachowsky and Curtis Priem, with a vision to bring 3D graphics to the gaming and multimedia markets. He has run it ever since and has become the head of a large company with the longest history in all of Silicon Valley. With the revaluation of Nvidia on the stock market, Huang's fortune has skyrocketed. He owns about 87 million shares of the company (3.5% of the capital), valued at about 35,000 million dollars.

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