Over the past two years, a simple company founded by three computer scientists at Denny’s has skyrocketed from just 300 million to over three trillion in valuation, surpassing almost every other tech company on the planet. This company is none other than the technology powerhouse NVIDIA. Ranked second globally in market capitalization, NVIDIA is one of the most significant tech companies to pioneer the future. This booming growth will only continue as NVIDIA leads the development of advanced technology and AI.
Across the globe, NVIDIA has already established dominance in the computer hardware chips and GPUs industry. With their groundbreaking GPU innovations, previously slow computers could quickly process massive graphics, revolutionizing the gaming industry. This promoted NVIDIA’s graphics cards as a permanent industry standard, cementing their crucial role in the 50 billion-dollar industry for years. Gaming is already a staple of modern society and will only grow over time, with models estimating a 200 billion dollar market in the next 15 years. Over time, the dependence on and demand for NVIDIA graphics cards will only continue to grow as they pioneer the future of technology.
This booming growth has been reflected in NVIDIA’s massive sales. Despite the enormous head start competitors such as AMD had, NVIDIA quickly surpassed them with key GPU innovations. Every couple of years, NVIDIA CEO Jensen Huang continues to grow his company by releasing new groundbreaking generations of graphic cards with vast technological leaps, such as significantly faster processing power and speed. This has been reflected in their massive sales of over $26 billion in the first quarter, compared to AMD’s measly $5 billion. With annual sales of over 60 billion, three times that of AMD, NVIDIA has already crushed all competition. Still, NVIDIA didn’t stop there.
Along with groundbreaking innovations, NVIDIA employed ingenious market strategies that set it up for success. In June 2024, NVIDIA’s stock price skyrocketed over 10% due to the strategic 10:1 stock split. By splitting every stock into ten, NVIDIA significantly reduced the cost of each stock, allowing for more accessible investment. This only boosted NVIDIA’s significant growth, pushing it to the top two technology companies across the globe while surpassing Amazon, Microsoft and even Alphabet, the parent company of Google.
Still, one of the most significant contributors to NVIDIA’s success was their AI innovations, paving society’s future path. Companies that want to create massive AI models, such as ChatGPT, require managing large datasets and massive processing power. These tasks aren’t possible with a slow CPU that runs one operation at a time. Instead, these tasks require the full power of a NVIDIA GPU. As the backbone of AI, the NVIDIA GPU offers unmatched computational speed and efficiency, making it the primary choice for AI developers. Over the past two decades, NVIDIA has sown itself into the very fabric of AI and is the foundation for society’s future.
Despite AI starting small, its effects on society are already noticeable with the rise of ChatGPT and other machine learning models tackling complex tasks such as complex research simulations and self-driving cars. As the world becomes more digital and quantum computing emerges, the demand for NVIDIA’s graphics cards in supercomputers will continue to grow, and the company that started over breakfast at Denny’s will continue to define society’s future for years to come.
