The US chipmaker, buoyed up by its key role in the artificial intelligence boom, had briefly become the world’s most valuable companybut the crown slipped quickly. Nvidia shed about $550bn from the $3.4tn peak market value it had reached that week, as tech investors, combining profit-taking with doubts about the sustainability of its
, are built. Nvidia shares are inching back, returning above $3tn this week, because it remains the best way to buy shares in the AI boom. Is that enough to propel it to $4tn despite the emergence of investor doubt?Alvin Nguyen, a senior analyst at the research company Forrester, said “only a collapse of the genAI market” would prevent Nvidia from reaching $4tn at some point – but whether it got there first ahead of tech rivals was another matter.
Nvidia, by contrast, is selling spades in a gold rush. Despite years of investment in capacity, it continues to sell its top-end chips faster than it can make them.
None of the big rivals compete with Nvidia – yet – at the absolute top end. But that’s not the only place where competition is happening. A report from, a tech news site, highlighted the rise of “batch processing”, offering businesses cheaper access to AI models if they’re OK with waiting for their queries to be run at periods of low demand.
“All their customers have been rushing to order the GPUs but they won’t be doing that forever,” said Wilson. “Customers over-order and then start cancelling. It’s a sweet spot now but it cannot be sustained.” He could see Nvidia getting to $4tn and beyond, but “maybe not at the current pace”.
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Source: FinancialReview - 🏆 2. / 90 Read more »