An overnight upheaval, with the market value of American chip giants skyrocketing by 1.34 trillion yuan, and the founder behind it turned out to be of Chinese descent

Tech 2023-06-03 20:55:53 Source: Network

#New financial forces in May#Please click on the link below for the video:An overnight upheaval, with the market value of American chip giants skyrocketing by 1.34 trillion yuan, and the founder behind it turned out to be of Chinese descentOn May 24th, most technology stocks in the US capital market rose, thanks to a single stock that led to outstanding performance

#New financial forces in May#

Please click on the link below for the video:

An overnight upheaval, with the market value of American chip giants skyrocketing by 1.34 trillion yuan, and the founder behind it turned out to be of Chinese descent

On May 24th, most technology stocks in the US capital market rose, thanks to a single stock that led to outstanding performance. This stock was NVIDIA, and NVIDIA's stock price rose 24% on that day, with a market value skyrocketing by $1.34 trillion overnight, with a total market value approaching $1 trillion. And NVIDIA's inherent Chinese ancestry has also become the focus of attention.

On the same day, NVIDIA released its first quarter financial report. Previously, the market generally expected its revenue to be around $6.8 billion, but the actual data was $7.19 billion, up 61% and 19% year-on-year, respectively, a full 7% increase from the expected data. Such impressive performance surprised everyone, which also led to a sharp rise in its stock price on the same day, with a rise of over 20% and a peak of nearly 30%. After the market closed, its market value exceeded $960 billion, approaching the trillion dollar mark. According to other data, Nvidia's stock price has risen by over 109% since 2023.

Driven by the skyrocketing stock price of Nvidia, other AI chip concept stocks have also experienced overall gains. For example, TSMC's stock price has risen by 7%, which has even infected some concept stocks in the A-share market. For example, Jinbaize has directly closed its limit, while Langchao Information and Cambrian stock prices have also risen by more than 7%, and other communication ETFs have also been among the top performers.

According to analysis, the main driving factor for Nvidia's stock price surge this time is its strong performance in the artificial intelligence field, its dominant position in AI chips continues to strengthen, and its market share further consolidates, reaching 89%. In the field of artificial intelligence, NVIDIA is one of the world's largest GPU manufacturers for graphics processors and has been actively developing new products to continuously expand its market share. In the past few years, NVIDIA's AI chips have always been a leader in the field of artificial intelligence, with products widely used in multiple fields such as deep learning and big data analysis.

The first quarter financial report also showed that Nvidia's data center revenue reached $4.28 billion, with year-on-year and month on month growth of 14% and 18% respectively, which has been consecutive months of month on month growth. This is mainly because Nvidia's continuous expansion in fields such as artificial intelligence, cloud computing, and big data has made its data center business one of the main driving forces for the company's growth. With the continuous development of artificial intelligence technology, the market demand for data centers is also increasing. Nvidia's leadership position in this field has made it one of the biggest beneficiaries.

At the same time, Nvidia has also maintained a strong growth trend in fields such as gaming and cryptocurrencies, with gaming revenue of $2.36 billion, a year-on-year increase of 31% and a month on month increase of 9%. In addition, Nvidia also announced that it would cooperate with Tesla to provide it with artificial intelligence supercomputers for the research and development of autonomous vehicle. The announcement of the news of the cooperation between the two sides also provided considerable impetus for Nvidia's stock price to rise.

Not only that, NVIDIA's financial report data also shows that its future growth momentum is also strong, which further enhances investors' confidence in NVIDIA's future. In the first quarter financial report, NVIDIA's gross profit margin reached 66.1%, an increase of 2 percentage points year-on-year and 3 percentage points month on month. Meanwhile, NVIDIA's cash flow reached $2.47 billion, an increase of 78% year-on-year and 34% month on month. Nvidia Corporation stated that its revenue for the second quarter is expected to further increase to around $11 billion, based on a significant increase in the first quarter, with a year-on-year increase of 32.7%, which is 53.2% higher than expected.

These data all indicate that NVIDIA is continuously improving its profitability and financial condition, while also expanding its business areas, laying a solid foundation for the company's future development. Its future performance will continue to grow, no wonder investors are so excited.

We are currently on the eve of the AI era, and in the future, whoever has computing power will have the power of AI. Because of this, the demand for computing power on the market has been constantly increasing, especially for AI large models. If we want to continuously achieve breakthroughs, the demand for computing power facilities can only be higher, and the demand will only be more. This has led to the continuous skyrocketing price of NVIDIA GPUs, and the delivery cycle is also getting longer and longer, making the situation of supply exceeding demand very obvious.

Currently, NVIDIA's chip A100 is one of the main chips in AI applications, priced at approximately $10000. Nvidia's other chip, H100, is optimized for a specific AI architecture and is currently one of the most advanced chips in the AI field. Not long ago, retailers' quotes for H100 remained at the level of $36000, but now there has been a significant increase in prices. It is understood that a H100 can now be sold at a high price of up to $40000, which is simply astonishing. Even many industry insiders are exclaiming that the high price of $40000 may have some hype.

However, even so, it does not hinder the pursuit of GPU by capital, and even Musk has shown strong interest in GPU. Musk even said that the difficulty of obtaining GPUs is comparable to drugs, but Musk is still wealthy. Previously, there were media reports that Musk had already stockpiled at least 10000 GPUs, indicating that he is very concerned about the prospects of AI, most likely using these GPUs on his recently acquired Twitter to create a generative artificial intelligence. As a leader in social media, Twitter itself has a massive amount of data, and GPU helps Twitter analyze and extract these massive amounts of data.

Organic structure claims that with the further expansion of AI application fields, it will inevitably promote the accelerated growth of the computing power industry chain. At present, there is also a lot of room for development in the field of artificial intelligence in China. According to relevant data, in the next five years, China's AI will usher in an unprecedented wave of development opportunities. By 2026, the investment scale of AI in China is expected to reach 26.7 billion US dollars, accounting for 9% of the global total investment and ranking second. At present, dozens of companies and institutions in China are competing in the artificial intelligence big model race, including well-known large companies such as Baidu, Alibaba, and iFlytek.

Of course, the recent rise in NVIDIA's stock price has also been influenced by the overall trend of the technology industry. In recent years, the development of the technology industry has been accelerating, especially in the fields of artificial intelligence and cloud computing. Various new technologies and applications are constantly emerging, driving the growth of the entire industry. As a leading technology company, NVIDIA's stock price has also benefited from the growth of the entire industry.

However, what many people did not expect was that the founder of such a great company was of Chinese descent. The founder of NVIDIA, Huang Renxun, is a Chinese American. He was born in February 1963 in Zhejiang, and later moved to Taiwan with his family before moving to the United States. In 2007, he was named Time Magazine's Global Person of the Year, and in 2012, he was named Fortune Magazine's Business Person of the Year. In addition, he was also listed on Forbes' "Most Influential List in the Technology Industry" and Business Week's "Business Person of the Year".

Overall, Huang Renxun is a highly successful business leader and technology expert, and his success has become a model for the global Chinese and technology community. In 2022, Huang Renxun ranked 253rd on the Hurun Global Rich List with a wealth of 59 billion yuan. It is believed that in the year when Nvidia's business performance has skyrocketed, Huang Renxun's wealth will definitely increase significantly.

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