Nvidia's Trillion Dollar Turnaround in the Technology Market

The explosion of artificial intelligence since late 2022 has created a fierce race in the Big Tech group as well as many laboratories to develop AI models to serve humans. In that wave, Nvidia, from a company specializing in computer graphics , has become a "giant" when it officially joined the group of trillion-dollar enterprises, the fifth largest company in the US market value after Amazon, Apple, Microsoft and Alphabet.

But it wasn’t a fluke. The shift that helped Nvidia become the sixth most valuable company in the world as of early December 2023 was years in the making. Since 2007, the company has released the CUDA programming language and software package, which helps programmers take advantage of the hardware capabilities of GPU chips, and they’ve also found CUDA to be effective at training and running AI models.

CEO Nvidia - Jessen Huang chia sẻ tại một sự kiện trong chuyến thăm Việt Nam — Nvidia CEO Jessen Huang shares at an event during his visit to Vietnam

According to CNBC, Nvidia's core technology can be considered the "backbone" of today's influential AI products, including ChatGPT. Large language models like ChatGPT or Google Bard require thousands of GPUs for training and inference.

For many, Nvidia is associated with a hardware brand specializing in graphics and image processing for computers. But in reality, the company has shifted its focus to producing processing chips, including chips equipped with artificial intelligence. In an email sent to all employees in November 2023, the group's leadership announced that it is no longer a graphics company, but is aiming to become an enterprise specializing in AI.

The rush of governments and businesses to invest in AI has brought Nvidia a series of semiconductor chip supply contracts worth billions of dollars.

"Nvidia's hardware has become integral to the AI boom," said Insider Intelligence analyst Jacob Bourne. "The results show the company's importance to the current economic growth reality, based on the prospect of AI improving productivity and driving development."

The company’s AI business, part of its data center product line, is expected to see sales increase 41% in 2022 to $15 billion, surpassing its most famous business, Gaming. Experts also predict that Nvidia’s AI chip revenue will more than double by 2024, possibly reaching $31.27 billion, as the company holds more than 80% of the AI chip market.

In early December, Nvidia revealed that its quarterly profit had increased by 843% in just one year, from $656 million to $6.2 billion. According to The Telegraph , data center revenue increased by 141% in the three months, surpassing all expectations of the financial community on Wall Street.

During CEO Jessen Huang’s ongoing visit to Vietnam, Reuters confirmed that Nvidia will hold meetings and exchanges to promote the semiconductor industry in Vietnam, while seeking and establishing potential partnerships with Vietnamese technology companies. Before coming to Vietnam, Mr. Huang visited Singapore and Malaysia, to promote Nvidia’s ambitions in AI chips and the potential of Southeast Asia in this field.

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