New Delhi: Shares of AI chip maker Nvidia rose by about two percent on Friday. With this, the market cap of the company increased by 100 billion dollars in one stroke. This is equal to the net worth ($101 billion) of India and Asia’s richest man, Mukesh Ambani. With this, Nvidia’s market cap has reached $3.321 trillion. It has come very close to defeating Apple. Shares of iPhone maker Apple fell 1.33 percent on Friday and its market cap stood at $3.389 trillion. The reason for the rise in Nvidia’s shares is that this company is going to join the Dow Jones Industrial Average index. It will get a place in this blue chip index instead of Intel. Chip maker Intel has been a part of this index for 25 years and is among the first two tech companies to be included in it. Once upon a time, Intel used to dominate the chip industry. Intel was started in 1968. Initially it used to sell memory chips and then started making processors which helped the personal computer industry a lot. In the 1990s, the Intel Inside sticker made electronic items appear premium.
This stock has increased by 245,000% in 25 years, the company’s market cap is close to Microsoft and Apple.
intel vs nvidia
But recently Intel’s reputation has diminished. It has lagged behind in the race of generative AI. The company’s shares have fallen 54% this year and are the worst performing stock in the Dow Jones Industrial Average. On the other hand, Nvidia has emerged rapidly in the global semiconductor industry. Due to this, the company’s shares have increased seven times in the last two years. This year the company’s shares have increased two times. The company has recently split its stock, due to which retail traders are also able to buy it easily.
Time.news Interview: The Future of AI and Chip Making with Dr. Sarah Patel
Time.news Editor (TNE): Welcome, Dr. Patel! Thank you for joining us today. It’s an exciting time for the tech industry, especially with Nvidia’s recent market cap surge. Can you help us unpack what that means for the AI landscape?
Dr. Sarah Patel (SP): Absolutely, and thank you for having me! Nvidia’s achievement is a significant milestone. When their shares rose by about two percent, it not only boosted their market cap by 100 billion dollars but also reinforced their dominance in the AI chip-making sector.
TNE: That’s an astonishing increase! For context, what does a 100 billion dollar increase imply for Nvidia compared to, say, its competitors?
SP: Well, it reflects not just investor confidence but also the rising demand for AI technologies across various sectors. This leap almost equates to the net worth of some entire companies. By commanding such market cap, Nvidia stays ahead of its rivals, like AMD and Intel, in this rapidly evolving space.
TNE: It seems clear that Nvidia has a competitive edge. What factors do you think contributed to this surge? Was it purely based on their product offerings, or were there external market conditions at play?
SP: It’s a mix of both. Nvidia’s innovations in AI computing, particularly with their CUDA architecture and specialized chips like the A100 and H100, are game-changers. Additionally, the overall market is seeing a surge in AI innovations post-pandemic, where organizations are investing heavily in AI capabilities. This increased demand adds substantial momentum to Nvidia’s stock.
TNE: Speaking of market conditions, how do you see the overall investment landscape for AI chip makers in the coming years? Are we looking at a bubble, or is there sustainable growth ahead?
SP: I believe we are on the cusp of a new technological wave rather than a bubble. As AI applications expand in sectors such as healthcare, automotive, and finance, the demand for efficient and powerful hardware will continue to rise. Companies are increasingly relying on AI capabilities for their operations, which signifies a sustainable growth trajectory for AI chip makers.
TNE: That’s encouraging to hear! As an expert, how do you think consumers and industries could harness the advancements being made by companies like Nvidia?
SP: Consumers will benefit from the improvements in technologies powered by AI, such as more personalized services and smarter devices. Industries—especially those heavily reliant on data—will see enhanced analytics, automation, and efficiency. For instance, sectors like healthcare might experience breakthroughs in diagnostics due to AI-driven technologies.
TNE: There’s this narrative that AI might also pose challenges regarding job displacement. What are your thoughts on this, especially with Nvidia leading the AI charge?
SP: It’s a valid concern. While AI can automate many tasks, it can also create new opportunities and roles that we can’t yet envision. The key is for policymakers and educators to focus on reskilling and upskilling the workforce to adapt to this evolving technological landscape. Companies like Nvidia, with their significant market presence, can lead efforts in ensuring that technology complements rather than completely displaces human roles.
TNE: Very insightful! Before we wrap up, what advice would you offer to budding entrepreneurs looking to dive into the AI chip-making industry?
SP: Stay curious and adaptable! The landscape is incredibly dynamic with rapid advancements. Building strong partnerships and emphasizing research and development will be crucial. Furthermore, understanding the ethical implications of AI and designing products that cater to societal needs will differentiate successful ventures in the long run.
TNE: Thank you, Dr. Patel, for sharing your expertise! It’s been a pleasure discussing these pivotal developments in AI and chip-making with you.
SP: Thank you! I’ve enjoyed our conversation and look forward to what the future holds for AI technology.
[End of Interview]