NVIDIA, one of the largest manufacturers of graphics cards on the planet, has managed to enter the top 6 of the companies with the best market capitalization in the world, thanks to the sales of its new chips oriented to artificial intelligence (AI).
In it report For the first quarter of 2023 revenue published on May 24, NVIDIA reported earnings of nearly $7.9 billion, an increase of 19% over the previous quarter. This increase allowed NVIDIA’s market capitalization to reach over USD 940 billion, placing it as the sixth most valued company in the world.
The increase is not accidental, since the company has focused its efforts on its new A100 chips, oriented to the field of AI. This type of GPU is exclusively for AI training and use. It is estimated that ChatGPT, the most famous and most widely used AI of the moment, uses between 10,000 and 30,000 of these A100 GPUs to operate.
For years, NVIDIA obtained good returns thanks to the cryptocurrency sector. In May 2021, CriptoNoticias reported that the company’s profits had doubled thanks to the sales of GPUs, the demand for which came from Ethereum mining, and to a lesser extent other cryptocurrency protocols, such as Ethereum Classic, Ravencoin, among others. others.
However, due to the Ethereum Merge, which put an end to mining on the network, the company saw cut sales of up to 50% during the end of 2022.
That is why the company has set its sights on AI. NVIDIA’s own CTO sees the potential of AI for society. In his own words, he suggests that “cryptocurrencies offer nothing to society, AIs do”, in relation to the high consumption of GPUs that both technologies require.