Nvidia takes off: AI hype leaves gamers out in the cold

Nvidia has risen to become one of the biggest companies in the world. The AI hype is already making Nvidia much less reliant on gamers. Upgrading data centers is now the focus, as Nvidia CEO Jensen Huang himself has confirmed.

Nvidia: Shifting focus to data centers instead of gamers

Nvidia is primarily known for its graphics cards, and it’s not far from there to enter the gaming world. However, it is doubtful whether the focus on providing the best graphics cards for gamers will continue. Nvidia CEO Jensen Huang himself acknowledges that the company is struggling to keep up with orders for data center upgrades.

The ongoing AI hype requires manufacturers of generative language and image models to have tremendous computing power, which Nvidia is eager to provide. The recently presented financial results have demonstrated the company’s success in this area. Even more promising than the current figures is the outlook: Nvidia expects revenue of around $11 billion in the current fiscal year, surpassing analysts’ expectations of $7.2 billion.

Nvidia on track to become a trillion-dollar company

If Nvidia continues to develop as projected and the stock performance persists, it could soon become a trillion-dollar company. In that case, Nvidia would join the ranks of other heavyweights like Apple, Microsoft, Alphabet, and Amazon.

However, Tesla and Meta (Facebook) have demonstrated that companies can also be removed from this exclusive club. Both companies would need to nearly double their market capitalization to reach a trillion-dollar valuation again.

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