Posted 2/24/2024, 12:00:00 PM
Nvidia's Dominance in AI Chips Fuels Surging Demand and Stock Market Impact
- Nvidia specializes in graphics processing units (GPUs) that are critical for powering AI applications
- Its chips are the "workhorses" for training AI models and it has a "quasi monopoly" in the space
- Nvidia's focus on GPUs for over 30 years gives it a big advantage over CPU specialists like Intel
- Demand for its unique GPUs is surging as companies rush to build AI capabilities, causing a chip shortage
- Nvidia's success now means it has an outsized impact on overall stock market performance