NVIDIA Takes On Apple As CEO Exudes Confidence About NVIDIA's AI Chips!

No matter where we look in the world of technology, we just can’t seem to escape a specific term: artificial intelligence (AI).

On the other hand, the world of AI is also ruled by one specific name – NVIDIA!

NVIDIA has made it big in the last few years thanks to the big boom AI brought with it. This is thanks to their ultra powerful GPUs (Graphics Processing Unit), which form a core part of the development of AI models and AI-powered tools.

Essentially, the more powerful a developer’s GPU is the better the performance of their product can be and NVIDIA comes with some potent technology.

This has made NVIDIA indispensable to the AI industry, which is already revolutionizing most industries. So much so that the company, which enjoys 80% of the high-end AI chip market, has been making headlines and breaking records in the stock market.

So, what action is NVIDIA enjoying in the market? Let’s explore!

 

What Is NVIDIA’s Position In The Market?

 

• Recently, we reported that NVIDIA broke the $2 trillion market capitalization ceiling, making it just the fourth US company to do so, after Apple, Microsoft and Alphabet.

• What’s more impressive is that the company took 24 years to reach the $1 trillion mark, which it hit in May 2023, while the next trillion-dollar jump took only 270 days or roughly 9 months.

• This also came with the company’s stock prices tripling within a year, while it replaced Tesla as the most traded stock by value.

• Now, the company is closing its gap on the second-most valuable company in the world – Apple.

• As the popularity and interest in semiconductors picks up, especially in the AI domain, NVIDIA finds itself a mere $230 billion behind Apple, holding a market capitalization of $2.38 trillion.

• NVIDIA’s aspiration is further enhanced by Apple’s slowing iPhone sales, which saw it lose the top spot to Microsoft for the first time since January 2021.

• Even the top spot is in NVIDIA’s crosshairs, with Microsoft sitting $645 billion away.

• Speaking on NVIDIA’s push, Richard Meckler, Partner at Cherry Lane Investments, said, “NVIDIA's rally reflects the incredibly strong fundamentals underlying its current business model,” adding, “It is also finding strong speculative support as a favorite among long option buyers who have seen almost a straight upward climb throughout 2024.”

It’s this boisterous climb by NVIDIA that’s brought its CEO’s name to the top of the list of leaders in the technology industry.
 
In the last few weeks, NVIDIA CEO Jensen Huang has been making the headlines too for his take on the future of the AI industry and the AGI industry (artificial general intelligence). Now, the company’s CEO makes the news for his confidence!
   

What Did NVIDIA’s CEO Say?

• In an event at Stanford University, John B. Shoven, the Trione Director of the Stanford Institute for Economic Policy Research and the Charles R. Schwab Professor of Economics at Stanford, asked Jensen Huang, “You make completely state-of-the-art chips. Is it possible that you'll face competition that claims to be good enough – not as good as NVIDIA – but good enough and much cheaper? Is that a threat?”

• Jensen Huang’s reply began with saying, “We have more competition than anyone on the planet has competition. Not only do we have competition from competitors, we have competition from our customers.”

• This includes actively helping competing customers who are designing alternative chips that are aimed at replacing NVIDIA’s chips by showing them current and future chips that the company is designing.

• Huang also spoke about the contrast between people considering prices of chips and data center operators who focus on the cost of operations, conveying that companies need to be aware of the Total Cost of Ownership (TCO). Essentially, this would mean that the benefits that NVIDIA brings in terms of deployment, performance, utilization and flexibility are “so good that even when the competitor's chips are free, it's not cheap enough.”

Do you think NVIDIA’s competition will ever be able to challenge the giant? Do you think NVIDIA will overtake Apple and Microsoft to become the most valuable company in the world and how long will it take?
 
Let us know in the comments below!