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Three keys to easily understand the growth of NVIDIA and its weight in the world of AI

A few days ago we saw that the value of NVIDIA shares had skyrocketed, and that this huge increase did not square with the latest quarterly results. These results were not bad from a quarterly perspective, that is, they represented remarkable growth quarter over quarter, but they were not good from a comparative year on year.

As a result of this, comments began to emerge saying that the value was inflated and that in the end a bubble had been generated, but is it really so? You have to take into account something that many still seem to forget, and that is that NVIDIA is no longer a company limited to designing GPUs for gaming. The company has extended its business areas to other markets, including servers and data centers, workstations, automotive, AI and software.

It is precisely this sector that of AI, is experiencing a huge boom, and this has been one of the main reasons why the value of NVIDIA shares has skyrocketed in such a way without the need for any type of bubble to occur. It is very easy to understand if we are clear about these three keys:

NVIDIA

  • NVIDIA has a huge ecosystem of solutions for AI at the software level, including generative AI, AI training, data analysis, inference, AI applied to speech and conversations, and cybersecurity.
  • The company also has to its credit a very complete set of supercomputers and scalable and adaptable systemswhich are prepared to work with different services and AI modalities.
  • At the hardware level, NVIDIA has been able to promote and improve its specialized AI solutions. In this sense, tensor nuclei they play a fundamental role both in graphics accelerators and workstation graphics cards, and even have a very competitive application in the world of gaming thanks to DLSS 2 and DLSS 3. Even a solution as modest and cheap as the GeForce RXT 4060 Ti is capable of reaching 353 TFLOPs in FP8.

Put all of this on the table, and contextualize it with the huge AI boom that’s going on, it’s very clear why NVIDIA has become candy for investorsand why its shares have experienced such enormous growth.

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