The leading manufacturer of AI hardware
Artificial Intelligence (AI) in all modern industries represents this generation’s staple technological advancement. As companies worldwide rush to capitalize on the demand and attempt to create the best uses for AI software, the necessity for capable hardware to train and upkeep their systems continues to surge.
Nvidia, a software and chip manufacturing company, has proven to be at the head of the AI industry, supplying everything for companies like Google, Microsoft, and Open AI, the creators of ChatGPT, among other systems, which greatly depend on it. According to the Wall Street Journal, Nvidia holds over 70% of the AI computing hardware market, which is increasing daily and shows no signs of slowing down.
Nvidia stockÂ
NVDA stock has skyrocketed, as expected by their market demand during the AI surge. At the beginning of 2023, when AI was starting to make headway, the company stock price was $191.62. The stock is currently at $595.05, displaying 210% growth in just under a year. The increase in AI chip sales brings in an estimated amount of nearly $20 billion annually with consistent growth, as The New York Times indicates. On top of that, all companies working with Nvidia and utilizing their hardware have seen drastic increases as well.
Nvidia’s AI software
Nvidia also creates software that utilizes AI aspects such as generating images from descriptions, video upscaling, allowing for better-looking images with higher performance, and video editing. NVIDIA AI Platform brings everything needed to assist businesses worldwide through its hardware and tools, which can support many services. And even though other companies hold most of the market share for developing software, Nvidia’s platform still drives many organizations.
AI hardware competition
In a widespread and globalized industry, Nvidia faces significant competition for manufacturing AI products. Intel (INTC) and Advanced Micro Devices (AMD), who have long been competitors for Nvidia’s standard computer systems, also hold substantial parts of the industry. AMD, for instance, has seen nearly 120% growth from $72.45 to $158.74 in the same timeframe as Nvidia’s drastic growth. Intel and many other AI companies have seen significant market share and influence increases over the past year. Another type of AI hardware that competes heavily with all these companies and may gain considerable headway is Application Specific Integrated Circuits (ASICs). ASICs are made for specific tasks or a company’s AI needs and are often more efficient than the graphics processing units from Nvidia, AMD, and Intel.
Nvidia and AI in the future
Despite the ongoing transitions to newer hardware, the AI explosion is only beginning, and plenty of room remains for companies to grow. Alongside their market for standard computer parts, most people see Nvidia as continuing to be a crucial part of the AI industry.
