Nvidia Corp. has achieved a new milestone by becoming the world’s most valuable publicly traded company, surpassing tech giants like Microsoft and Apple. The company’s success is fueled by the increasing demand for its artificial intelligence chips, which play a crucial role in the development of advanced AI systems capable of creating text, images, and audio with minimal human input. Nvidia’s revenue has skyrocketed to $26 billion in the latest quarter, a significant increase from the previous year. The company’s shares have also more than tripled in value over the past year, making it the top performer in the S&P 500.
In a bid to meet the rising demand for AI-driven computing power, key Nvidia supplier Taiwan Semiconductor Manufacturing Co (TSMC) is exploring a new method of chip packaging. This new technique involves the use of rectangular panel-like substrates instead of traditional round wafers, allowing for more chipsets per substrate. The transition to this new packaging method will require substantial development efforts and equipment upgrades.
According to semiconductor analysts, Nvidia will continue to benefit from the growth of AI technology, especially with the upcoming Hopper and Blackwell B100/200 platforms set to be launched by 2026. Investors looking to gain exposure to Nvidia can do so through ETFs like Vanguard S&P 500 ETF and Invesco QQQ Trust.
Nvidia’s shares have seen a significant increase of about 210% in the last 12 months, reflecting the growing interest in the company and its products. The stock was trading up 2.62% at $139.13 premarket, indicating continued investor confidence in Nvidia’s future prospects.
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