Chip manufacturer Nvidia has become the third most valuable company in the US as its stock continues to rise, closing at $788.17 per share, a more than 60% increase from the beginning of the year. This record-breaking closing price has helped boost Nvidia’s market capitalization to nearly $2 trillion.
This move comes after a report released on February 21st showed that the demand for specialized chips for Artificial Intelligence (AI) computing continues to exceed analysts’ expectations. The rapid upgrading of AI services by companies has driven the demand for AI chips produced by Nvidia, leading the company to forecast a 233% surge in revenue in the current quarter, surpassing market expectations of a 208% increase.
Prior to this groundbreaking development, Mr. Đỗ Cao Bảo, a member of FPT Corporation’s Board of Directors, shared his perspective on his personal page with the title “The remarkable growth of Nvidia’s stock is closely linked to the era of Artificial Intelligence (AI)”.
Mr. Bảo noted that in the history of humanity, no technology company or any other company has experienced such rapid and extraordinary value growth as Nvidia.
He gave the example of Facebook (FB): despite having 3 billion Facebook users, meaning that for every two adults there is one Facebook user, the company’s value still falls short of 2/3 of Nvidia’s.
Alternatively, consider Amazon: the world’s largest e-commerce company and dominant player in e-commerce in the US, Europe, and developed economies (not to mention that Jeff Bezos, the founder of Amazon, is also the second richest person in the world). Most computer users use Google to search for and retrieve information on the web (I, personally, use Google dozens or even hundreds of times every day); in addition, Google has Gmail, Google Maps, Google Translate, Google Chrome, and the total assets of Larry Page and Sergey Brin, the two co-founders of Google amount to $258 billion. Yet, the value of both companies is lower than Nvidia’s.
Mr. Bảo also mentioned Tesla: currently, the leading player in the electric vehicle industry, and Elon Musk, the founder of Tesla, Starlink satellite internet – the richest person in the world. However, the value of Tesla is still less than 1/3 of Nvidia’s….
Nvidia is not a young technology company, Jensen Huang founded Nvidia in 1993, which means it predates Amazon, Google, Facebook, and Tesla. Nvidia went public in early 1999; before the pandemic, the company’s value was still below $60 billion, and it took 24 years to reach the milestone of a $1 trillion company, but it only took 270 days (9 months) to reach the $2 trillion milestone. Nvidia has now become the third-largest technology company in the world, behind only Apple and Microsoft.
According to Mr. Bảo, analysts all agree that the miraculous growth of Nvidia’s stock is due to the explosive development of AI and that AI is now entering a new era: a revolutionary change in all global economic and social fields, and Nvidia is the beating heart of the AI supercycle, not Open AI (chatGPT) or the giants Microsoft, Google (Gemini), Amazon, Tesla, Meta, or IBM.
“So why is Nvidia, a chip manufacturer that is only famous among gamers and graphic designers, dominating the AI field and enjoying the best, most clear-cut position in the AI revolution?” He poses the question and promises to answer it in an upcoming article titled “Nvidia is the beating heart of the AI supercycle.”
It should be emphasized that at the end of 2023, Mr. Jensen Huang, the founder and CEO of Nvidia Corporation, made a business trip to Vietnam. During this visit, the CEO of Nvidia is known to have discussed semiconductor cooperation agreements with representatives of the Government and leading technology companies in Vietnam, including FPT.
