Nvidia's trillion-dollar milestone in the technology market

The explosion of artificial intelligence since late 2022 has created a fierce race in the Big Tech group as well as many laboratories to develop AI models to serve humans. In that wave, Nvidia, from a company specializing in computer graphics , has become a "giant" when it officially joined the group of trillion-dollar enterprises, the fifth largest market capitalization unit in the US after Amazon, Apple, Microsoft and Alphabet.

However, it was not a stroke of luck. The shift that helped Nvidia become the sixth most valuable company in the world as of early December 2023 was actually years in the making. Since 2007, the company has released the CUDA programming language and software package, which helps programmers take advantage of the hardware capabilities of GPU chips, and they have also found CUDA to be effective in training and running artificial intelligence models.

CEO Nvidia - Jessen Huang chia sẻ tại một sự kiện trong chuyến thăm Việt Nam — Nvidia CEO Jessen Huang shares at an event during his visit to Vietnam

According to CNBC, Nvidia's core technology can be considered the "backbone" of influential AI products today, including ChatGPT. Large language models like ChatGPT or Google Bard require thousands of GPUs for training and inference.

For many people, Nvidia is associated with the hardware brand specializing in graphics and image processing for computers. But in fact, the company has shifted its focus to producing processing chips, including chips equipped with artificial intelligence. In an email sent to all employees in November 2023, the group's leadership announced that it is no longer a graphics company, but is aiming to become an enterprise specializing in AI.

The rush of governments and businesses to invest in AI has brought Nvidia a series of semiconductor chip supply contracts worth billions of dollars.

"Nvidia's hardware has become indispensable to the AI boom. The results show the company's importance to the current economic growth reality, based on the prospect of AI improving productivity and promoting development," said analyst Jacob Bourne of Insider Intelligence magazine.

The company’s AI business, part of its data center product line, is expected to see sales increase 41% in 2022 to $15 billion, surpassing its most famous business, Gaming. Experts also predict Nvidia’s AI chip revenue will more than double by 2024, possibly reaching $31.27 billion, as the company holds more than 80% of the AI chip market.

In early December, Nvidia revealed that quarterly profits had increased by 843% in just one year, from $656 million to $6.2 billion. According to The Telegraph , data center revenue increased by 141% in three months, surpassing all expectations of the financial community on Wall Street.

During CEO Jessen Huang’s ongoing visit to Vietnam, Reuters confirmed that Nvidia will hold meetings and exchanges to promote the semiconductor industry in Vietnam, and seek and establish potential partnerships with Vietnamese technology companies. Before coming to Vietnam, Mr. Huang visited Singapore and Malaysia to promote Nvidia’s ambitions in AI chips and the potential of Southeast Asia in this field.

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