With artificial intelligence (AI) – specifically generative AI – being the au courant darling of the global technology sector, chip developer and manufacturer Nvidia is beginning to look like one of the trend’s biggest beneficiaries.
The company’s chips now serve as the brain and backbone for the clouds used by the likes of Google parent Alphabet, Amazon’s Amazon Web Services (AWS), and Microsoft. But with the big jump into AI-enabled technologies, Nvidia chief executive Jensen Huang sees his company riding the crest of this wave into success.
Data centers, which are referred to internally by Nvidia employees as AI factories, contributed significantly to the company’s quarterly revenue in recent months, with its most recent rising by 14% to settle at a record high of $4.28 billion. Also, the company’s value was jettisoned into the $1 trillion zone following a summer sales forecast that was at least 53% higher than that predicted by investment analysts.
To date, Nvidia has left its longtime rival Advanced Micro Devices Inc (AMD) in the dust and its worth is at least seven times higher than top industry player Intel.
Taking the Lead
While Nvidia is best known as the company that fuels gaming PCs, it now finds itself the brain – if not the beating heart – of the most significant nascent technology in over a century.
Currently, Nvidia controls 80% of the market when it comes to data-center accelerators, one of the key components required for the development and deployment of AI tools. It also boasts that companies need to wait for at least eight months for a single AI processor – and those companies are more than willing to wait.
While the company is slowly but surely chipping through its backlog, its competitors have – so far – failed to come up with reasonable and functional alternatives to its products. In which case, it’s safe to say that this computing pioneer is bound to enjoy success for quite a while.