Thanks to the strong demand for AI, NVIDIA’s share price shakes off the gloom

Recently, the burgeoning prominence of artificial intelligence has been evident, and the support of GPUs is undeniably crucial in training such formidable AI systems. In the realm of machine learning, NVIDIA’s GPUs have flourished, owing to CUDA, with giants like OpenAI, Microsoft, and Elon Musk all purchasing a multitude of GPUs from NVIDIA. This has resulted in NVIDIA’s stock price soaring, with reports from The Street and Windows Central indicating that it has rebounded to levels observed in April of the previous year.

In 2022, due to sluggish demand and semiconductor trade issues between nations, NVIDIA’s stock price experienced a substantial decline, with its lowest closing price at $112.27 (Eastern Time, October 14, 2022).

The turning point occurred in November of the same year when OpenAI’s ChatGPT officially launched. This chatbot was more intelligent and versatile than its predecessors, garnering widespread attention. Subsequently, with the involvement of major domestic and international companies like Microsoft, Google, and Baidu, a new wave of AI enthusiasm emerged. Virtually every company involved in machine learning required vast computational power to train their models, resulting in a deluge of orders for NVIDIA.

On December 30, 2022, Eastern Time, NVIDIA’s closing stock price stood at $146.14 per share. Merely four months later, on April 21, 2023, Eastern Time, the closing stock price skyrocketed to $271.19 per share, an increase of 85.5%. As of now, NVIDIA’s market capitalization amounts to $669.839 billion. It is safe to say that the AI boom has been incredibly potent.

Currently, numerous investors express ample confidence in NVIDIA’s prospects, believing that with the advancement of AI, NVIDIA will continue to maintain its edge and emerge as a leader in the generative AI domain.