​The first big winner of the artificial intelligence craze was Nvidia, which briefly surpassed the $1,000 billion market capitalization threshold, becoming the first processor company to do so. By comparison, competitor Intel, with much higher sales, has a market cap of $120 billion after management and manufacturing problems.

The $1000 billion mark is very difficult to reach, and performance is even more so since Nvidia was under $300 billion in October, when OpenAI’s ChatGPT was not yet released.

In recent years, Nvidia has invested heavily in high-powered processors for use in generative AI systems. It was clear that there would come a time when these systems would become popular, there was no telling when, but Nvidia was ready.

These special processors have phenomenal power and are very expensive: for example, the A100 model costs $10,000, and the H100 costs about $40,000. These processors have become a benchmark in the market, and the company said it expects total sales of $11 billion in the current quarter, 50% higher than analysts’ estimates.

Nvidia has focused on a very promising market that will certainly continue to grow for years to come.

Since its founding in 1993, Nvidia has focused on graphics processors and has continued to invest in the sector, insisting on chips with high performance, high prices and serious profit margins.

Last quarter, Nvidia had a profit of two billion dollars and sales of $7.2 billion.

In each of the last two fiscal years, Nvidia’s sales totaled more than $26 billion, a huge difference from 2016, when the total was $5 billion. The largest increase was seen between 2021 and 2022, by almost ten billion dollars.

The company has more than 26,000 employees, which is twice as many as three years ago.

Sources: AFP, CNN, Financial Times, Statista, macrotrends.net