Jensen Huang, the co-founder of Nvidia, is experiencing unprecedented success as his company becomes the world’s most valuable, surpassing Microsoft in market capitalization. Despite this achievement, reports suggest that Huang is feeling anxious about the future of Nvidia, fearing a fate similar to that of tech giants Cisco and Sun Microsystems, which collapsed after the dot-com bubble burst.
Nvidia, known for its GPUs for gaming systems, has faced challenges over the years, including failed attempts to develop software for autonomous vehicles. Analysts have drawn parallels between Nvidia and Cisco, both companies that dealt in hardware crucial to the technology of their time. Cisco, once the most valuable company in the world, saw its stock price plummet by 90% after the dot-com bubble burst. Similarly, Sun Microsystems, valued at $200 billion, was later acquired for a fraction of that amount.
Huang is reportedly taking steps to diversify Nvidia’s business beyond chips, including ventures into cloud server rental and software development. Nvidia AI Enterprise, an operating system for training AI, is one such initiative. By learning from the failures of companies like Cisco and Sun, Huang hopes to prevent Nvidia from suffering a similar fate. Time will tell if these efforts are successful in ensuring Nvidia’s longevity and relevance in the rapidly changing tech landscape.
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https://www.businessinsider.com/jensen-huang-nvidia-history-demise-cisco-sun-microsystems-2024-6?amp
