The article discusses the surge in Nvidia’s stock price, driven by the hype surrounding artificial intelligence (AI) and the company’s position as a leading provider of chips for AI systems. According to analysts, Nvidia’s stock could potentially reach a market value of $1 trillion by 2024, reflecting the immense growth potential in the AI market. The company’s graphics processing units (GPUs) are widely used in AI applications, particularly for training large language models like ChatGPT. Nvidia’s data center business, which supplies chips for AI systems, has seen significant revenue growth, contributing to the company’s strong financial performance. However, the article also notes that the stock’s valuation is heavily dependent on the continued growth and adoption of AI technologies. As AI becomes more prevalent across various industries, Nvidia’s position as a key enabler of AI hardware could drive further stock price appreciation.
Source: https://abcnews.go.com/Business/wireStory/nvidias-stock-market-1-trillion-2024-rose-ai-110505428