Nvidia, a major producer of graphics processing units (GPUs), has reported a remarkable 265% increase in revenue compared to the previous year. This surge in revenue can be attributed to the growing global demand for artificial intelligence (AI) equipment and accelerated computing. In the fourth quarter of the fiscal year, Nvidia recorded revenue of $22.1 billion, marking a 22% increase from the previous quarter. This success has propelled the chipmaker’s market capitalization to $1.67 trillion.
Furthermore, Nvidia has surpassed Tesla, led by Elon Musk, as the most-traded stock on Wall Street. Traders have moved approximately $30 billion worth of Nvidia shares in the last 30 trading sessions, surpassing the average of $22 billion for Tesla during the same period.
Interestingly, Tesla has announced its plan to invest over $500 million in AI hardware from Nvidia in 2024 alone. This move highlights the significance of Nvidia’s technology in the AI industry. However, Tesla also intends to purchase AI-related hardware from Nvidia’s main competitor, AMD.
The Nvidia RTX series, introduced in September 2018, has become a preferred platform for enthusiasts, gamers, and creators involved in generative AI. In the third quarter of 2023, Nvidia achieved a revenue of $18.1 billion, supported by a strong market cap of $1.2 trillion.
Yann LeCun, the chief AI scientist for Facebook AI Research at Meta, has acknowledged Nvidia’s dominant position in the AI hardware industry. He further emphasizes that Nvidia is fueling the ongoing AI war. However, LeCun criticizes the excessive reliance on text-based models to train generative AI systems. He argues that text is an inadequate source of information and cites the limitations of these models in understanding basic logical relationships.
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