As generative artificial intelligence (AI), including ‘ChatGPT’, is within the limelight, Nvidia, which makes computer chips resembling graphics processing units (GPUs), has emerged as the most important beneficiary. The corporate’s computer chip sales surged as generative AI required larger and faster computing power than ever before.

On the twenty third (local time), quite a lot of foreign media including Reuters announced Nvidia’s sales forecast for the primary quarter of this 12 months at $6.5 billion (about 8.48 trillion won), and the stock price rose by about 14% to $236.7, a rise of greater than 60% this 12 months. was reported to have been recorded.

It’s interpreted that Nvidia’s forecast exceeded the US stock market’s estimate of $6.33 billion. Consequently, the corporate’s market value jumped to 580 billion dollars (about 757 trillion won), five times that of rival Intel. It became the seventh largest company in the USA.

Nvidia’s upward trend is all of the more remarkable as other chip makers, resembling Intel and AMD, are mostly experiencing stagnation on account of sluggish sales of other electronic products resembling personal computers and smartphones.

Nvidia’s strength comes from having about 80% of the GPU market. GPUs are gaining weight in data centers because they’ve a bonus over central processing units (CPUs) in securing computing speed. Gartner, a research firm, predicted that the share of GPUs would increase from 3% in 2020 to greater than 15% in 2026.

Demand for GPUs is predicted to grow much more in the longer term as generative AI tools develop and proliferate. Within the case of Microsoft, which is competing with Google for search, it has 10,000 GPUs in its supercomputer in-built the cloud, Azure. Nvidia signed a contract in November last 12 months to deploy tens of hundreds of A100 and H100 GPUs on Azure infrastructure.

The Wall Street Journal said that for this reason dominance within the AI ​​chip market, Nvidia is in the perfect position to become profitable. Nvidia made an honest profit even in the course of the previous cryptocurrency boom.

Demand for the GeForce series, which is a graphics card used for games, has soared to the purpose of supply shortage on account of the worldwide Ethereum mining craze. Accordingly, in January 2021, it released’Nvidia CMP’, a graphics card dedicated to mining, and earned $150 million in that quarter alone, triple the stock market’s forecast of $50 million.

Jeong Byeong-il, member jbi@aitimes.com