The rising popularity of ChatGPT, an AI-powered language tool, has turned NVIDIA GPUs into literal gold for the booming AI business.
NVIDIA AI GPUs See Massive Success As ChatGPU & Other AI Tools Show Up, Stock Soars To New Heights This Month
ChatGPT and other language/image/video generation tools rely heavily on AI processing power and that’s where NVIDIA’s main strength lies. The company may be known for its blistering-fast gaming GPUs but AI is another strong suit and one in which the company has seen more success in recent years. NVIDIA definitely has a major edge in AI over the competition which includes Intel and AMD.
There’s no doubt that NVIDIA currently has the fastest AI GPUs on the planet with its Hopper H100 and Ampere A100 architecture. Both chips have been banned from the Russian & Chinese markets due to potential use in military assistance but the company still offers revised variants in the China market.
Not only these tools are where AI is a big deal but there’s also a huge demand for faster AI power in the data center, cloud, and automotive segment where NVIDIA also dominates with its GPUs. The company has seen a massive growth of over 40% in just a single month & the current stock stands at an impressive 45%+ growth (this month).
With the rise of OpenAI’s language tool, ChatGPT, Wall Street traders are increasingly betting on chip-makers like Nvidia, which has climbed more than 34% this month.
As a result, CEO Jensen Huang, who cofounded the company in 1993, has seen his wealth balloon by more than a third to $18.9 billion.
According to Bloomberg’s Billionaire Index, the $5.1 billion gain gives Huang the largest percentage gain to his net-worth among US billionaires so far this year.
The 59-year-old Taiwanese immigrant is coming off a less memorable year, as he was among other tech moguls who lost big money, including Meta’s Mark Zuckerberg and Tesla’s Elon Musk.
This means that NVIDIA is putting its AI prowess to good use and turning gold into profits with Bloomberg reporting that CEO, Jensen Huang, added $5.1 Billion US to his wealth, the single most and “largest percentage gain” among other US billionaires, this year. Jensen Huang currently stands in the 80th spot on the US Billionaires list.
NVIDIA can find a major success through ChatGPT with its AI GPUs. (Image Credits: Forbes)
But that’s not the end of NVIDIA’s gain as Citi analysts have suggested that ChatGPT will continue to grow and that could further result in more NVIDIA GPU sales throughout 2023. Sales are estimated between $3 to $11 Billion. Other analysts from Bank of America and Wells Fargo have also said that NVIDIA is to gain from the popularity surrounding the AI / ChatGPT biz. Overall, this bodes well for NVIDIA in the coming quarters as they will have room to grow and post some positive earnings in a PC market that is currently in a recovering phase.
The post ChatGPT Has Turned NVIDIA’s AI GPUs Into Literal Gold, Company Stock Soars Over 40% This Month by Hassan Mujtaba appeared first on Wccftech.
