This video shows how Nvidia's AI could transform the experience of talking to video game characters
Business InsiderFEB 25 2023
Nvidia Briefly Becomes World's 2nd-Most Valued Firm
Image copyright:Â Justin Sullivan/Staff/Getty Images News via Getty Images
The Facts
US artificial intelligence (AI) chip maker Nvidia's market value rose 5% Wednesday to $3.01T, temporarily surpassing Apple as the world's second-most valuable company. After skyrocketing at the market's opening, it then dropped 0.4% back to third place.
The company's stock price jump came amid reported preparations to split it 10-for-one this coming Friday, potentially making it more attractive to individual investors.
Amid rising confidence in its continued sales growth to cloud companies, the Nvidia scrip has reportedly soared more than 24% since its first quarter earnings release in May. Nvidia currently controls 80% of the chip market for data centers.
The Spin
Narrative A
Nvidia's meteoric rise exemplifies the volatility in predicting new tech markets. While uncertainties remain over future chip demands and competitive pressures from giants like Microsoft and Amazon, Nvidia's strong developer tools enhance its position. Even though Wall Street predicts a revenue growth slowdown, Nvidia's key role in AI remains unmatched.
Narrative B
At such high valuations, a fall in Nvidia's share price is both inevitable and imminent. At the very least, it will not be able to sustain such a rockstar performance for too long. As Nvidia is currently trading at almost 90 times its earnings, investors will serve themselves well by applying caution and keeping in mind that markets are cyclical.
Metaculus Prediction
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