How Nvidia Became the Leader in the AI Boom
Why Nvidia is leading the AI boom
Nvidia invented GPUs in 1999 and has been the leader in that category ever since. GPUs deliver better performance for AI training, inference, and other applications, driving Nvidia's success in the generative AI boom.
Advanced GPU Technology
- GPU performance has increased roughly 7,000 times since 2003, making Nvidia's GPUs the best in training and inference.
- Nvidia enjoys a virtual monopoly in the data-center GPU category with a 98% market share.
Competition is emerging, but Nvidia’s innovation and dominance make it the leader in AI GPUs.
Nvidia's post-ChatGPT surge
After ChatGPT's launch, Nvidia stock surged, gaining 428% by March 12, far outperforming market indices. Investor concerns about a potential bubble seem overblown as Nvidia's profitability and valuation continue to grow.
Is it still safe to buy Nvidia?
- Nvidia remains a strong investment choice due to its innovation, market dominance, and profitability.
- Investors should expect volatility in the AI sector but Nvidia's leadership position suggests continued success in the industry.
Investing in Nvidia post-ChatGPT can offer significant returns for investors seeking exposure to the booming AI market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.