Nvidia Overtakes Meta, Tesla by Market Cap as Firm Captures AI Hype

Nvidia’s rise appears to know no end.

Known for its graphics processing hardware and CUDA tech crucial for modern AI advancements, the firm’s stock soared following the firm’s latest earnings report which outlined how much Nvidia has bagged amid the latest artificial intelligence hype.

At today’s prices, Nvidia’s market capitalization is $963.18 billion, officially outpacing Berkshire Hathaway ($700.59 billion), Meta ($671.53 billion), and Tesla ($612.25 billion).

At this year’s Computex 2023, the firm’s CEO Jensen Huang showcased a cornucopia of AI-infused tech during his two-hour-long keynote speech, highlighting the myriad ways generative AI and accelerated computing will continue to transform the world.

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One of the central reveals was the Nvidia Avatar Cloud Engine (ACE), a suite of AI tools that has the potential to redefine gaming development.

The system allows for the creation of AI-driven non-player characters (NPCs) that respond to players in real time, generate their own unscripted dialogues.

During the demo, Huang introduces the audience to a vivid cyberpunk ramen shop complete with an interactive proprietor who discusses his concerns regarding rampant crime.

“My ramen shop got caught in the crossfire,” he tells us gravely.

“This is the future of video games,” said the CEO. “Not only will AI contribute to the rendering and the synthesis of the environment, AI will also animate the characters. AI will be a very big part of the future of video games.”

AI around the market

Nvidia isn’t the only winner in the rise of AI.

Other tech giants like Meta, Microsoft, and Alphabet have also enjoyed soaring stock prices, thanks in part to their significant investments in the technology.

AI hardware manufacturers have seen their shares increase as well. Advanced Micro Devices Inc. (AMD), which creates AI-optimized computing solutions, has seen its shares rise 94% this year.

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Taiwan Semiconductor Manufacturing (TSM) and Micron Technology, key players in the AI industry, have also experienced significant gains, reflecting the strong market potential for AI hardware.

This underscores a broader market trend where AI investment becomes a key factor driving the tech industry’s growth.

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