Bloomberg reported on the 23rd (local time) that Nvidia, a U.S. semiconductor company, saw its stock price soar 65% this year amid the craze for generated artificial intelligence (AI) “ChatGPT,” and its market capitalization soared by USD 220 billion.
On the New York Stock Exchange, Nvidia soared 14.02% from the previous trading day to USD 236.64 due to better-than-expected performance in the market and higher investment ratings by investment banks.
On the previous day, Nvidia announced its earnings shortly after the market closed, saying last quarter’s sales were $6.051 billion. This was 21% lower than the previous year, but exceeded the market’s estimate of $6 billion.
It is analyzed that this is because Nvidia’s chip sales for AI increased significantly with the emergence of AI Chatbot ChatGPT.
In addition, Goldman Sachs, the world’s top investment bank, raised Nvidia’s investment rating, which contributed to the surge in stock prices.
As a result, Nvidia’s stock price soared 65% this year, and its market capitalization increased by $65 billion on the same day alone, up $219 billion this year. As of this day, Nvidia’s market capitalization was 589.7 billion dollars.
This is because Nvidia’s chips for AI are drawing attention as competition between Microsoft (MS) and Google’s AI chatbots intensifies with the appearance of ChatGPT.
NVIDIA’s graphics processing unit (GPU) is considered suitable for driving AI’s machine learning. As a result, demand for AI chips produced by Nvidia is increasing rapidly.
Nvidia is listening to the general slump in the semiconductor industry due to AI chip specialties.
On the other hand, Google saw it stocks fell upon an error on its ChatGPT demonstration.