How Nvidia's AI Strategy Fueled Its $1 Trillion Valuation | WSJ

Thanks to AI, chip maker Nvidia broke into the exclusive club of companies, like Apple and Microsoft, that have a $1 trillion market cap. Nvidia’s chips power generative AI like OpenAI’s ChatGPT by being able to do lots of complex computations simultaneously. As Nvidia keeps powering tech giants like Google and Amazon, can the chip company keep up with demand?
WSJ’s Asa Fitch breaks down how the company got there - and why AI is fueling the company’s rapid growth.
0:00 Nvidia added $183.8 billion in market value in one day
0:43 How Nvidia got here
1:47 Nvidia and AI
4:18 Supply-chain issues
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news.
#Nvidia #AI #WSJ

[@ozandemiroz]

Nvidia never stop innovating. I also wonder why Micron has not seen a similar increase in value as they are also integral part of data center business.

[@B21_raider]

They got banned by China in areas of critical infrastructure also micron makes memory which is a commodity and has had the worst 2 years Samsung Hynix micron all posting huge losses

[@ramzic]

Everyone is running into the goldmine and Nvidia is at the door handing out shovels 😂

[@damionmurray8244]

Not handing out shovels....selling them!

[@Mosopia]

@@damionmurray8244 not just selling them, sell them with 4,5,6 digits

[@Belaziraf]

@@damionmurray8244 Be grateful it's not Apple selling them.

[@zabrak999]

Very similar to Microsoft in the 80s & 90s - right down to showing an older titan how it’s done 💁‍♂️

[@SuperPlayz]

Nvidia is such a great company but I don’t believe the valuation is there right now

[@TaataGeo]

Reminds me of Covid SPACS

[@SA-nu2so]

This kinda went completely different 🤣🤣🤣🤣

[@SuperPlayz]

@@SA-nu2soyea it has like doubled since this comment

[@okman9684]

​@@SuperPlayzthanks for admitting how wrong you were. This comment thread is literally one of those "I told ya" Moments that I rarely see on internet

[@MrGriff305]

Does anyone else remember Intel at the height of the internet bubble? And Intel didn't even have competition for PCs. Intel's stock still hasn't recovered.

[@MARKXHWANG]

jensen bet his company on AI 10 years ago. he is well deserved for being the AI king, and invented the AI market

[@spitfire2885]

This dude Jensen is truly the father of AI

[@MARKXHWANG]

I think so too. He is one who made AI works with 1 million times proccessing power in 10 years

[@TywinLannister0]

Market capitalization of NVIDIA (NVDA) Market cap: $1.013 Trillion As of June 2023 NVIDIA has a market cap of $1.013 Trillion. This makes NVIDIA the world's 6th most valuable company

[@IstanbulSanchestivansoon4567]

Now it is a 2.7T company

[@CarsandBikes]

I think Cathie Woods made a mistake exiting from Nvidia.....

[@georgebeez-ee39]

Cathie Woods is always making mistakes

[@justtyler.]

Under the radar is a bit stong. I'd say a "Company on the Cutting Edge."

[@middelz2]

Yeah I didn't understand this either😂 They are like the go to brand for graphics cards😂

[@ps3guy22]

I think they mean for the general public. We know what gpus like the RTX 4090, A6000, A100, H100 (etc.) are but members in my family don't even know who Nvidia is.

[@squidwardo7074]

@@ps3guy22 i told my parents they should invest in nvidia/amd and they were like "whats dat?"

[@christophersingh8123]

And this video is about why NVIDIA no longer cares about the gaming community and consumers because it's all about stocks and market price and pleasing shareholders. It'll all about money now.

[@salkryeful]

I'm getting a sense of deja vu. Wasn't there an article titled "Why Internet Is Cisco's Key to Its Half Trillion Valuation?"

[@JTMarlin8]

Nvidia is worth 6X as much as Intel today. Think about where they were back in the 2000s.

[@B21_raider]

Paper value intel will come back once 18a is released that’s why I’m long intel and short nvidia

[@JTMarlin8]

@@B21_raider I hope so! Intel needs to catch back up in the chip game.

[@mikelay5360]

​@@B21_raider😂😂

[@JorgeRicardo540]

Their next goal should be Quantum computers

[@emeraldbonsai]

there fantasy and not viable atleast for now and very long time

[@dablet]

i find it hard to believe AMD or Intel could not do it. either way, here's hoping they catch up so we, consumers, have options.

[@ssdrbx6180]

Nvidia almost has a monopoly over the Machine Learning space. Most ML models are built using CUDA, which is a proprietary Nvidia platform. It is hard to get current ML developers/scientists to learn new platforms unless they offer good incentives. Both AMD and Intel opt for their own platforms plus conversion toolkits. Intel has some edge over AMD that they can run some lighter Machine Learning models in integrated GPU in their CPU, in addition to that most Intel consumer GPUs can run ML models on Windows, while AMD is a bit vague on it.

[@soylentgreenb]

AI didn’t suddenly appear in 2023. It’s been in the background for well over a decade making incremental gains. The hype will die. Randoms will consider AI a flop and eventually AI will be handled by dedicated processors which are easily 10 times more efficient. Nvidia will have to pivot and make AI accelerators or microsoft and google will make their own; or any of the random mostly private smaller companies will win (e.g. Cerebras). Nvidia has an API; computationally they don’t have anything. Fabrication wise they don’t have anything either; they just fab at TSMC like everyone else. The hype will eventually die and P/E will collapse to something more reasonable for a fast growing company (e.g. 50). Which comaony eventually wins when AI becomes useful I don’t know; but I’d rather bet on Microsoft or Google than Nvidia and I’d much rather own TSMC which will be fabing the product no matter who designs it.

[@salesmaniacs]

Yes, and a lot many options. Startups have already launched AI chip that deliver better performance than that of Nvidias gpus. Their growth is restricted just because of the issues going on between countries.

[@kimeli]

so in the end it is TSMC that is really the most crucial.

[@lawrencefearon6830]

At this point I'm only investing in Nvidia to maximize profits. Nobody is more pure play Ai. Nobody collects Ai profits earlier. There's a time to diversify and a time to concentrate. This is the time to concentrate on the manifester of Ai, Nvidia.

[@soylentgreenb]

Dozens of companies are pure play AI and nVidia is not an AI company. They make graphics cards which are ill suited to AI. They exist off the shelf and have an API that is well understood. But the future is dedicated processors and nVidia has to pivot and show that they can catch up.

[@lawrencefearon6830]

@@soylentgreenb 80% of Ai chips come from Nvidia. 20% from AMD. There is no Ai without Nvidia.

[@Laminar-Flow]

@@lawrencefearon6830 That’s not sure to be the same in the future... Nvidia did invent the GPU, though.

[@jtgd]

4:29 spoken like a true addict

[@extremeguy967]

In what world is Nvidia "under the radar" or "not a household name"?! Have you EVER bought a PC or played a video game in your life?!

[@MARKXHWANG]

under the radar mean 98% of people missed the boat. until every penstion fun starts to buy, it ramains under radar

[@eqrmn3934]

Under the radar? Really? Who else do people think of when going for graphics

[@shephusted2714]

other companies are going to lean forward and up the specs on their own gpu - adding more ram to handle the LLM models is a big factor so expect amd and intel to pressure nvidia going forward -this competition in the ai modeling space will benefit everyone and we should see major gains made in ai enterprise to filter down more to prosumer and consumer mkt segments going forward - ai is not a fad and everyone wants a piece of the action. #erdos number

[@androidtv8114]

2:43 ↓e↑

[@gustavonegron5794]

Sound credible! 💥

[@louieuy7607]

Next bubble here we go

[@mikelay5360]

😂 haters.. we'll see

[@squidwardo7074]

sad that it screws over regular people until it pops just like with bitcoin

[@apophisxo4480]

@@squidwardo7074I own Bitcoin, but I realize that it has no intrinsic value. AI is the future of EVERYTHING! From war to longevity…I agree that these types of chips will become commodities, but we’re not there yet. This has only just begun. Hope you’re not short…..

[@jarrodyuki7081]

my fatehr works for nvidia.

[@lil----lil]

i need a digital twin.

[@Proletariat-intifada]

Sad for gamers tho, geforce cards are hella expensive and their "budget" options are a scam

[@sapphyrus]

Good for nVidia, bad for gamers. They'll keep driving up the prices since they don't need to sell to individual customers anymore.

[@CasinoBaccaratKingmaker]

NVIDIA ❤

[@baratbushan8230]

Nice Analysis with regards By Adv T E Barat Bushan Senior Advocate Member of MHAA Chennai

[@dhirajpersonal5034]

All of these Trillion dollar companies are from the US😯

[@chrisklugh]

All I know is we Humans will not be going to the other side of the Singularity that we built.

[@auro1986]

ask will ai work in computers which have nvidia?

[@salesmaniacs]

With startups already getting ahead of Nvidia's GPUs, it's doubtful that Nvidia can keep its lead in the AI chip industry.

[@amateurgamer149]

Nvidia is god🙏 to gamers like us. It's charm is magical.❤❤🎉🎉

[@Don-md6wn]

Stock market lunacy is the key to a $1 trillion market capitalization.

[@tttwotwelve]

"under the radar company" bro nvidia been had the dominant share of gpus in most computers forever

[@jarrodyuki7081]

my father works for nvidia he can offer a job or intern to any colelg studetns from the top 30 unvieities with at least 3.6 gpa and cs degree or major.

[@SpottedHares]

Everyone keeps saying that their Chap bot will change everything…. Eventually so just keep giving us money.

[@Masada1911]

Did you guys say AI?!

[@raquetdude]

All until the American government and EU restrict or limit high end GPUs. Which will happen as Ai is a security issue for governments.

[@raquetdude]

@Banu Qurayza not really, why tf would they or any state (India, Russia, Japan, Korea, China, EU, USA, Brazil) be for the public to have unregistered access to high end ai systems that could do incredible damage??? They would probably make it so using them would require your name/ID. Could even see the UN agreeing on some motion around it as virtually no government likes it

[@publicspeaker4009]

Oh calm down that’s not how it works.

[@squishtomar1676]

Not how it would work bud. Their own countries would fall behind as Russia or China advance

[@ecognitio9605]

The market will take care of that, why would Nvidia sell Gaming GPU's when they can use the same silicon to sell extremely expensive AI Hardware.

[@raquetdude]

@@publicspeaker4009 how it works now…

[@jarrodyuki7081]

marines and navy

[@darrenphilip247]

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

[@farehtinyilmaz851]

We have learnt in investing journey that you can't control the market but you have the power to control your actions in the market.

[@satishawal7207]

Arrived here at 2 views only

[@jarrodyuki7081]

nvidia!!!!!!!!!!!!!!!!!

[@TheFinanceHub_]

Did you just call Nvidia an "under the radar" graphics processor? This is why I hate mainstream media

[@MekeniGaming]

Elon musk: 🤔

[@rohullahkarimi8497]

cars, pc, robots, cryptocurrency mining, AI and ........ Nvidia is like the shovel and pick of all industry right now that powers everything.

[@theoturner1137]

Under the radar?? How can this news channel simultaneously credit video games as the biggest entertainment industry and yet not recognize the cornerstone technology it uses? 😂

[@squidwardo7074]

because the people who wrote this are over the age of 30. I don't know a single person my age who doesn't know of nvidia/amd, yet none of my family does

[@user-vh4ul5gc1k]

yes they are, gold is a valuable resource to the United States mining industry.

[@ER-sv1np]

องค์ประกอบ ai สำเร็จ - ทุกส่วนที่เกี่ยวข้อง ไฟฟ้า chip knowhow R&D education - การจะสร้างอุต ai ให้สำเร็จ

[@mho...]

"$1 Trillion Valuation" eh?! how about lowering the prices on GPU's back to pre-crypto mining inflation?! , now that they milked everyone because of a few crazy miners, it would be nice to come back down to earth again! # makeDIY PC's great again!

[@mattbegley1345]

What good are these chips if only tech giants and governments can afford them?

[@Ardarail]

What good are MRI machines if only big hospitals can afford them? What good are fighter jets if only governments can buy them?

[@Saffroncarp1106]

Sronk

[@kekeoliveira4222]

tesla hit the 1 trillion club too but fell of and now is on the rising

[@aacasd]

Crediting NVDA to the success of every AI use case is discrediting the core contributions by Models and Algorithms that make this domain successful. GPUs will be replaced with power efficient and cost effective devices.

[@aacasd]

NVDA systems only scale by adding new large resources. Increasing costs and making it impossible to break even for businesses.

[@emeraldbonsai]

the majority do run nvidia though nvidias cuda is the best platform out there atm

[@aacasd]

PyTorch, Tensorflow, Keras, and more are the libraries used for AI, ML, DL models. Cuda is not a dependency, this could get replaced with something that doesn't need GPUs. Assuming cuda, essentially NVDA will contribute to growth of AI use cases is the stock traders lack of knowledge.

[@AntonioPerez-zk2mb]

Hey can I ask you dorks a question? I'm looking to invest in a MacBook pro with the M1 chip. How future proof is that laptop for graphics and video editing work vs a cheaper brand with separately purchased graphics cards? For the money which one is the better value?

[@squidwardo7074]

@@AntonioPerez-zk2mb If the programs you need on mac only work on mac or you need to move it around easily then get a mac. Otherwise get a desktop. You can do so much more with windows and most windows laptops aren't very good

[@joaosas]

You should include Saudi Aramco at the start of the video

[@R4dr1ar]

No, they only list like 1% of their total shares on the stock exchanges, so kind of fraud

[@cryptobro0]

This is your time to short brothers

[@boscostick3725]

Thanks to shorts sellers we got here today 😂

[@iknujbyhvtgcrfxedw-nb6ew]

I'm sorry

[@jarrodyuki7081]

marine and navy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@jarrodyuki7081]

i have to beocme a pilot!!!!!!!!!!!! work in the west bay or become an admiral!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@user-yo7fx2xn8m]

👆This is how we got here

[@jarrodyuki7081]

estj istp !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@marcosramirezmartinez4777]

Tarea 19

[@tnndll4294]

AI needs to be regulated. There is no benefit to free-will AI. We should have AI that is advanced and intelligent, but no free will or sentience.

[@victoriadimon]

Just Bubble

[@ps3301]

All gamers must buy amd gpu and free Nvidia up to make more Ai modules

[@jarrodyuki7081]

taoxiahsheng gaozongwu!!!!!!!!!!!!!!!!!!!!!!!

[@prerna95]

⬛

[@frandydejean2469]

the stock is overvalued who cares as long as I am in. I love tech, but I love $$ too

[@macheerou]

Let's just wait and see as they are completely lost their mind at the mainstream GPU market by giving underpowered specs for a sky high price. These talks about AI while not really providing the computational power to the masses at a reasonable price are a complete joke.

[@hydranth]

No insider buy since 2021, but yeah, great company :D

[@apophisxo4480]

Well, insider buying is a great indicator, but why not just use common sense? What has the price per share done since 2021?

[@an152771]

Too much hype over inflated Nvidia's current value though, $500 billion seems fair

[@nivamour1698]

LL natureza vidas que Deus criou a gente se vc quiser vir aqui na 🌎🌍🌎 de bom humor 🙏🏻🙌🏻 trazer em casa e o meu pai também não sei o tem nada em casa eyiye te ilumine te trato bem e ryiy ryiyry y vc não y não 🚫 a tu e o meu filho de eyiye te amo muito meu yitryiyry te tu não tem como não ser tu e a e a sua tia tá bom então vai y vc não vai fazer nada disso não é hoje y vc vai ficar com vc 🥺 que Deus abençoe 🤚🏻 de novo pra pedir pra eyiye yryiyey e vc como tá o povo da é muito bom pra vc não vai tu não vai ter nada de vc 🥺 que eu estou passando mas Deus está com todos nós estamos bem graças é vidas que Deus te abençoe e te falo se não for pra uma pessoa mais feliz com a gente tem que fazer o exame de é bom trabalho valeu meu amor por favor estou a disposição pra mim não é e eu não sei se vou conseguir ryiy não e não 🚫 a mãe tá bom pra vc e sua ex y tu tá bem é te mandar o dinheiro y vc não vai tu não vai uma coisa pra yiy de mim mesmo jeito 🥺🥺 e não tem ryiyeyiyry de em casa ryiyeyuyryyr um o ET y é o rei é muito especial e o y vc vai ficar é muito especial pra mim não y tá bom em casa ta bom vou falar pra te ver e vou fazer o bem tá bom pra todos amigos de verdade 💕 todos nós vamos tentar fazer o que fazer o bem de noite e dia yryiy yryiy yryiy e vc é muito é o é o eu não eyiyeyi yeyiye ti eyiye ryiyeyiyry iy uma 🕐 de mim mesmo eyiyeyyy é bom eu eyiye o meu tá o Ryan e em casa e a família e em casa e a família e os fã da música e o meu filho de Deus está no controle 🎮🎚️ e

[@Capeau]

overvalued... As if nvidia has a monopolyon AI, it hasn't... far from it.

[@YoloCholos]

they have a monopoly on the GPU's that power AI

[@sapphyrus]

CUDA platform is kinda the monopoly on everything regarding AI neural networks. Try some AI software on your PC and most will refuse to work with AMD GPUs.

[@Capeau]

@@YoloCholos no they don't.

[@YoloCholos]

@@Capeau When you come back to reality let us know

[@andruw9011]

This stock will fall faster than intel did

[@MARKXHWANG]

Elon is a honest man, that tells all

[@alexsnemos]

they shouldn't sell not one chip to China

[@JorgeRicardo540]

Their next goal should be Quantum computers

[@CS-qc7np]

What? Do you guys just put “Quantum” in front of everything? 😂😂