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Nvidia Hits $1 Trillion Valuation After Announcing New AI Products

Last Updated: July 5, 2023
Tech giant Nvidia is riding a successful wave after the artificial intelligence industry continues to drive high demand for its graphics processing units.

AI computing leader Nvidia hit a $1 trillion valuation on Tuesday as part of the continued growth in the artificial intelligence space. By close of trading, that number had dipped down to approximately $990 billion, but the milestone is nonetheless an impressive one.

Founded in 1993, Nvidia designs and manufactures graphics processing units (GPUs) that have driven advancements across AI, gaming, robotics, and other tech-focused industries. More recently, Nvidia’s GPUs have been an integral part of generative AI platforms like ChatGPT and Google’s Bard AI as well.

Following the recent success of its AI tech, the chipmaker’s stock was trading for about $404 per share at the time of this writing, up nearly 6%. Today brought a new 52-week high for Nvidia and comes after the company shared a really strong earnings report. Nvidia reported $7.19 billion in revenue for its most recent quarter, up 19% from the previous quarter. The chipmaker projects that it will report $11 billion in revenue in its next earnings report.

As of Friday, May 26, Nvidia’s stock was up more than 165% compared to a year ago.

So, while Nvidia’s $1 trillion valuation plateau was technically temporary — at least for now — it comes as part of a wave of momentum after the company announced a lineup of new AI-driven offerings.

Here’s a download on a few of the big ones.

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Nvidia’s New AI Products

Nvidia Co-Founder and CEO Jensen Huang announced a portfolio of new AI products and offerings during Computex Taipei, an annual international computer and technology trade show in Taiwan. Some of the new technologies Huang debuted include a high-powered supercomputer dubbed the Nvidia DGX GH200 and a platform called the Nvidia Avatar Cloud Engine (ACE) for video games.

Nvidia’s new supercomputer is powered by 256 of its Grace Hopper “superchips” that can run as a single graphics processing unit; this superpowered system carries 144 TB of GPU memory under one house. Google Cloud, Meta, and Microsoft will be the first batch of companies to get access to Nvidia’s supercomputer and will research and fact-check its capabilities. While that’s in play, Nvidia will be running its own research by running four supercomputer systems at the same time.

Nvidia ACE is a customizable AI platform with a suite of AI solutions for game development and deployment. The platform supports natural language for both input and responses. During Computex, Huang demoed games using Nvidia ACE and showed how some of the platform’s services can be used. Game developers can tap Nvidia ACE to enhance 2D and 3D gaming avatars with more color using animation AI that leverages both video and audio. Nvidia ACE also boasts a service called Speach AI that allows avatars to “hear,” understand, and speak when engaging with users. The service already supports 34 languages.

Huang also announced that Nvidia is partnering with SoftBank to bring its Grace Hopper superchips to the bank’s data centers in Japan. Softbank will be able to host generative AI and wireless applications while also reducing costs and energy to do so.

Nvidia is in position to increase its hold on the video game, AI, and robotics industries alike, but the question we ought to be asking now is which other industries this company will touch — and whether their ceiling for growth is similar to that of the true Big Tech titans like Amazon, Apple, and Microsoft, which also reached and surpassed $1 trillion market caps in the past. Stay tuned, as all manner of industries’ investments in A.I. products and services is only gaining momentum.

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About The Author
Michelai Graham
Michelai Graham
Michelai Graham is Boardroom's resident tech and crypto reporter. Before joining 35V, she was a freelance reporter with bylines in AfroTech, HubSpot, The Plug, and Lifewire, to name a few. At Boardroom, Michelai covers Web3, NFTs, crypto, tech, and gaming. Off the clock, you can find her producing her crime podcast, The Point of No Return.