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NVIDIA's (NVDA) Valuation Surpasses $2T Milestone on AI Boost
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NVIDIA Corporation (NVDA - Free Report) surpassed the $2 trillion market capitalization last Friday as it continues to benefit from the robust demand for its next-generation chips for artificial intelligence models. This makes the graphic processing unit (GPU) maker the third publicly traded U.S. company, following Microsoft and Apple, which have a valuation of more than $2 trillion as of Mar 1.
It took NVIDIA around nine months to attain the $2 trillion milestone from the $1 trillion market capitalization as of Jun 14, 2023. The share price momentum, which started at the beginning of 2023 with NVDA stock soaring 239% in the year, has continued in 2024. Year to date, shares of the company have surged 66.1%.
NVIDIA’s remarkable share price run is primarily attributable to investors’ hopes that this Zacks Rank #1 (Strong Buy) company will be a prime beneficiary of growing investments in generative AI. You can see the complete list of today's Zacks #1 Rank stocks here.
Though AI has been around for years, the meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $66.62 billion in 2024 and $207 billion in 2030, according to a new report by statista. The market is expected to expand at a CAGR of 20.8% from 2024 to 2030.
The adoption of ChatGPT among enterprises has already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The proven success of generative AI has sparked competition among software makers, including Salesforce (CRM - Free Report) , Cisco (CSCO - Free Report) and Adobe (ADBE - Free Report) , to integrate the technology into their products. However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s CEO, Jensen Huang, had previously stated that existing data centers are insufficiently equipped to handle growing AI workloads.
NVIDIA’s GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. NVIDIA expects its first-quarter fiscal 2025 revenues to reach $24 billion from $7.19 billion in the year-ago quarter, largely driven by surging AI investments across the data center end market.
Software Companies Integrating AI Tools
Salesforce forayed into the generative AI space with the launch of Einstein GPT in March 2023. Later, in 2023, the company elevated the set of its generative AI tools with the launch of the AI Cloud service. With this, the company claims to offer one-stop AI-powered solutions for enterprises looking to enhance productivity.
Salesforce’s AI Cloud is a suite of services that delivers enterprise-ready real-time, open and secure generative experiences across all applications and workflows. The suite powers new capabilities across Salesforce’s products, including Einstein service, data analysis software Tableau and workplace-messaging app, Slack.
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. The company plans to enhance customer experience solutions, devices and its video conferencing platform, Webex Suite, with machine learning technologies, automation and generative AI features from meeting summaries to visual enhancements.
The digital media solutions provider, Adobe, aggressively expanded its footprint in the generative AI space through partnerships and new solutions. Adobe has unveiled a family of generative AI models, Firefly, focused on the generation of texts and images. Per the company, Firefly offers more precision, speed, power and ease in content creation. It lets users of various experience levels create high-quality images and stunning text effects.
At present, Salesforce and Adobe each carry a Zacks Rank #2 (Buy), while Cisco has a Zacks Rank #4 (Sell). Shares of CRM have rallied 20.4% year to date, while CSCO and ADBE have declined 4.2% and 4.3%, respectively.
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NVIDIA's (NVDA) Valuation Surpasses $2T Milestone on AI Boost
NVIDIA Corporation (NVDA - Free Report) surpassed the $2 trillion market capitalization last Friday as it continues to benefit from the robust demand for its next-generation chips for artificial intelligence models. This makes the graphic processing unit (GPU) maker the third publicly traded U.S. company, following Microsoft and Apple, which have a valuation of more than $2 trillion as of Mar 1.
It took NVIDIA around nine months to attain the $2 trillion milestone from the $1 trillion market capitalization as of Jun 14, 2023. The share price momentum, which started at the beginning of 2023 with NVDA stock soaring 239% in the year, has continued in 2024. Year to date, shares of the company have surged 66.1%.
NVIDIA’s remarkable share price run is primarily attributable to investors’ hopes that this Zacks Rank #1 (Strong Buy) company will be a prime beneficiary of growing investments in generative AI. You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
What’s Driving NVDA Stock Higher?
Though AI has been around for years, the meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $66.62 billion in 2024 and $207 billion in 2030, according to a new report by statista. The market is expected to expand at a CAGR of 20.8% from 2024 to 2030.
The adoption of ChatGPT among enterprises has already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The proven success of generative AI has sparked competition among software makers, including Salesforce (CRM - Free Report) , Cisco (CSCO - Free Report) and Adobe (ADBE - Free Report) , to integrate the technology into their products. However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s CEO, Jensen Huang, had previously stated that existing data centers are insufficiently equipped to handle growing AI workloads.
NVIDIA’s GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. NVIDIA expects its first-quarter fiscal 2025 revenues to reach $24 billion from $7.19 billion in the year-ago quarter, largely driven by surging AI investments across the data center end market.
Software Companies Integrating AI Tools
Salesforce forayed into the generative AI space with the launch of Einstein GPT in March 2023. Later, in 2023, the company elevated the set of its generative AI tools with the launch of the AI Cloud service. With this, the company claims to offer one-stop AI-powered solutions for enterprises looking to enhance productivity.
Salesforce’s AI Cloud is a suite of services that delivers enterprise-ready real-time, open and secure generative experiences across all applications and workflows. The suite powers new capabilities across Salesforce’s products, including Einstein service, data analysis software Tableau and workplace-messaging app, Slack.
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. The company plans to enhance customer experience solutions, devices and its video conferencing platform, Webex Suite, with machine learning technologies, automation and generative AI features from meeting summaries to visual enhancements.
The digital media solutions provider, Adobe, aggressively expanded its footprint in the generative AI space through partnerships and new solutions. Adobe has unveiled a family of generative AI models, Firefly, focused on the generation of texts and images. Per the company, Firefly offers more precision, speed, power and ease in content creation. It lets users of various experience levels create high-quality images and stunning text effects.
At present, Salesforce and Adobe each carry a Zacks Rank #2 (Buy), while Cisco has a Zacks Rank #4 (Sell). Shares of CRM have rallied 20.4% year to date, while CSCO and ADBE have declined 4.2% and 4.3%, respectively.