Posted 3/7/2024, 12:00:00 PM
Nvidia's $2 Trillion Value Rides on Dominating AI Chips Amid Fierce Competition
- Nvidia became a $2 trillion company by dominating the AI chip market early on before competitors caught up
- It pivoted from only making graphics cards for video games to making chips that power AI data centers and self-driving cars
- Its chips are indispensable but very expensive, charging over $40,000 for top AI chips compared to ~$15,000 by rivals
- With booming demand, Nvidia is selling out but faces growing competition from big tech firms wanting to make their own AI chips
- Sustaining its valuation depends on continued explosive AI growth, but hype may cool & competition ramps up posing challenges