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Businesses The Almighty Buck

Nvidia Hits $3 Trillion Market Cap On Back of AI Boom (cnbc.com) 45

Posted by BeauHD from the sign-of-the-times dept.
Nvidia has reached a market cap of $3 trillion, surpassing Apple to become the second-largest public company behind Microsoft. CNBC reports: Nvidia's milestone is the latest stunning mark in a run that has seen the stock soar more than 3,224% over the past five years. The company will split its stock 100-for-1 later this month. Apple was the first U.S. company to reach a $3 trillion market cap during intraday trading in January 2022. Microsoft hit $3 trillion in market value in January 2024. Nvidia, which was founded in 1993, passed the $2 trillion valuation in February, and it only took roughly three months from there for it to pass $3 trillion.

Nvidia's surge in recent years has been powered by the tech industry's need for its chips, which are used to develop and deploy big AI models such as the one at the heart of OpenAI's ChatGPT. Companies such as Google, Microsoft, Meta, Amazon and OpenAI are buying billions of dollars worth of Nvidia's GPUs.
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Nvidia Hits $3 Trillion Market Cap On Back of AI Boom More

Nvidia Hits $3 Trillion Market Cap On Back of AI Boom

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  • Bah, hindsight (Score:3)

    by iAmWaySmarterThanYou ( 10095012 ) on Wednesday June 05, 2024 @05:40PM (#64525981)

    Should've bought more way back when they became the top end video game card company. Oh well, hindsight n all that.

    Now that they're so fucking huge they can afford to scale into any new tech and Jensen is a very smart guy. As long as he's around they'll continue to be a successful powerhouse.

    After he retires, they'll eventually Intel their way down but that's a long time away.

    • NVidia has ignored AI acceleration in the low end of the market, focusing only on traditional gaming GPUs on the bottom end, with stuff that's good at AI all being "car prices" or higher. In a way, the 4090 was somewhat of a step backwards vs. the 3090 (same VRAM, no NVLink). As AI becomes increasingly common in tools (including games), cards that are better at it (GPUs with more VRAM, TPUs, etc) may open up a niche. But this requires that AMD close the software gap with CUDA. :

      • It's possible they left a gap but even if entirely so I doubt that will be a huge downfall point for them.

        Let's say AMD does step up and starts making real money there. How long until Nv notices and sells a cut down AI only version of its chips for smaller devices forcing AMD to compete in that market, too?

        Their sheer size combined with great leadership is going to be hard to topple. Very hard. I believe as long as Jensen is in charge they're unstoppable.

        I can't think of a bad major decisions he's ever m

  • It's because of job replacement (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Wednesday June 05, 2024 @05:40PM (#64525983)
    They're counting on Nvidia's hardware and software to replace trillions of dollars of jobs. As a cherry on that s*** cake those video cards are going to be sucking down the electricity that would normally be used by human beings who have now been made superfluous.

    Something I've learned is every single person on /. Thinks that they are an irreplaceable snowflake. I suppose you kind of have to feel that way in order to make it through the day because facing reality is more than a human being can take...

    So I'm just going to grant that if you're reading this You've got such amazing tech skills your boss can't replace you with an AI.

    So for all the millions and millions and millions of people who are about to be replaced with AIs do you think they're going to put a gun to their head and pull the trigger? What do you think they're going to bust their ass and start competing with you for what few jobs are left?

    Maybe you'll get away with it like the baby boomers did. Maybe you'll get the run out the clock, retire and die without ever experiencing long-term unemployment and/or homelessness...

    Statistically about 55% of baby boomers avoided that. They basically wrecked our society, environment and economy and they're going to drop dead before the blowback from that hits them.

    Now if you're reading this you are probably Gen x because that's who reads /.. I figured you've got a coin flips chance of avoiding the s*** storm that's coming by dropping dead before it hits you.

    But I keep thinking about those tens of millions of baby boomers who were busy pulling the ladder up behind them not realizing they were still climbing that ladder themselves... Can you really say for sure that you're done climbing the ladder? I guess we're going to find out, have fun. What's the phrase, fuck around and find out...

    • I suppose you kind of have to feel that way in order to make it through the day because facing reality is more than a human being can take

      Nah it's pretty easy to take the reality. Global horse population peaked just before cars. Guess what's going to happen to the human population? The kids today that don't want to have more kids have got it correct and likely that trend will continue, until we're left with enough Musk-eqse Billionaires fucking interns, girlfriends, and former wives to have enough bastard babies to keep humanity around. Eventually the 1% won't be 1%, not because their riches decreased, but because the strict number of oth

      • on the 2 industrial revolutions. Not high school level, college.

        There was *decades* of strife and misery until war and new tech got us back to full employment. The Luddites weren't just dummies that feared science Amish style, they were real people with valid concerns that lost their livelihood. Or hell read up on the shift from small craftsmen to large scale industrial production. Or just read up on fucking rickets...

        You don't know you're history. You know what you were taught in high school, whi

        • Re: (Score:3)

          by narcc ( 412956 )

          Don't worry, this isn't the next industrial revolution. It's a fad. AI isn't going to take your job, or even make your job easier. This will become increasingly clear as the novelty wears off and the imagined improvements to come fail to materialize.

          • Re: (Score:2)

            by Luckyo ( 1726890 )

            It already made a lot of jobs easier. If you're in any way in writing things on a computer, especially using templates, AI is a god send. It can do a lot of drudgery for you.

            There are other fields like first level of tech support that are already partially automated.

            • Re: (Score:2)

              by narcc ( 412956 )

              especially using templates

              There's just no hope for some people...

              • Re: (Score:2)

                by Luckyo ( 1726890 )

                If you don't use templates in your work, there's no hope for you.

                Human cognition works from that very principle. You don't relearn what muscles you need to use and how to walk every time. You mind builds a template.

                • Re: (Score:2)

                  by narcc ( 412956 )

                  Sigh... If you're using templates, then AI is only going to get in the way...

                  There's just no helping some people...

                  • Re: (Score:2)

                    by Luckyo ( 1726890 )

                    ...Right. Let's go back to primary principles.

                    Where does AI learn from?

                    • Re: (Score:2)

                      by narcc ( 412956 )

                      OMG... You are not even remotely qualified for that discussion.

                      Waste all the time you want on your silly AI fantasy. Your competitors will thank you.

                    • Re: (Score:2)

                      by Luckyo ( 1726890 )

                      And in real world on the other hand, there's a lot of graphics designers who are already out of job, complaining that their former employer had AI ingest all their templates, and now a single AI operator does a work of 10 graphics designers.

                      But it's a fantasy. No one has lost their jobs. They're all liars. And that one guy who can do a work of ten, and most of that work was utter drudgery of applying and adjusting templates... he isn't real either.

                    • Re: (Score:2)

                      by narcc ( 412956 )

                      there's a lot of graphics designers who are already out of job

                      Have any evidence of that? No? Why am I not surprised?

                    • Hmm...so while I'm basically (but not entirely) on your side on this topic, have you ever considered that you might be pathologically overconfident? It does make sense if you think about it...this is largely governed by your prefrontal cortex, which is just behind your face, which is where you say you're tired of being kicked. That would explain why you always think you're the only person qualified to talk about everything.

                    • Re: (Score:2)

                      by Luckyo ( 1726890 )

                      Literally, the latest video about "I lost my job because of AI" that went viral and had a lot of people chiming in with "that's what happened to me recently too" was that specific profession. That was what, two-three weeks ago?

                      So not only do you not understand the subject, you don't even follow the related events. And yet you are all perky and opinionated talking about it.

                    • Re: (Score:2)

                      by Rei ( 128717 )

                      As someone who trains AIs, I am. So let me repeat their question for them:

                      Where does AI learn from?

    • Re: (Score:3, Interesting)

      by ShanghaiBill ( 739463 )

      They're counting on Nvidia's hardware and software to replace trillions of dollars of jobs.

      300 years ago, people said the same thing about the steam engine. Yet here we are three centuries later, with 20-fold improvements in our standard of living and record-low unemployment.

      video cards are going to be sucking down the electricity that would normally be used by human beings

      Lots of energy is used to train ANNs but not to run them. The training is flexible demand that meshes well with renewables.

      facing reality is more than a human being can take...

      You're the one claiming, "This time will be different."

      Accusing others of not facing reality is ironic.

      • that's the line you need to think of. You're not thinking of somebody living through the upheavals from industrialization, you're thinking back as one of the survivors.

        Maybe 100 years from now you're great great grandkids will thank you... then again you're not. You're completely unaware of those upheavals.

        Not your fault really, you don't really read about them until a 200 level college history course... and that's the problem. We lie to kids. A lot. I mean, Christopher Columbus was a genocidal murd

        • You're not thinking of somebody living through the upheavals from industrialization

          Factory jobs in the 19th century sucked. But they were still an improvement over the grinding rural poverty people left behind.

          If people didn't consider factory jobs an improvement, they wouldn't have left the farm.

          If automation really caused poverty, then countries that avoided the "productivity catastrophe," such as Ethiopia, Mozambique, and Afghanistan, would be prosperous, and North America, Europe, and Japan would be impoverished. Of course, this is the exact opposite of reality.

          • Alternatively the grinding rural poverty was better but no longer possible since spinning and running a small farm no longer made enough to live on and many people, by design, couldn't afford to move back and buy back their plot of country land.
          • You think that the people who lost their jobs as craftsmen immediately went to the factories. That's not what happened. High school level history textbooks make it seem like that's what happened but that is not what happened.

            What actually happened is there weren't nearly enough factory jobs to go around for all the cobblers and seamstresses and whatnot who lost their jobs to machines. You had massive amounts of unemployment for decades. Eventually an expanding country, changes to the banking system and

      • Re: (Score:2)

        by Luckyo ( 1726890 )

        >300 years ago, people said the same thing about the steam engine. Yet here we are three centuries later, with 20-fold improvements in our standard of living and record-low unemployment.

        They were correct. No menial jobs of the kind that were replaced by ICE vehicles exist outside primitive tribal areas.

        Do you know why "service sector" came to exist as an economically relevant field? Because we no longer need to allocate most of manpower available to toiling the fields. Tractors do it for us now. Freed up

      • You are missing one key difference. All previous automation was over several years if not decades - giving lot of time for reskilling.. Whereas the current AI has already made several jobs redundant in the very first year of it being available publicly. And this is just the start. In previous one, mechanical stuff (either mechanical or clerical) got automated , letting people reskill themselves to non clerical work. Now whatever brains humans have are being replaced by AI. So what will people reskill them

      • Re: (Score:3)

        by necro81 ( 917438 )

        Lots of energy is used to train ANNs but not to run them.

        I wonder about that. Various sources indicate that a ChatGPT query takes 10-20 times more energy than a typical google search, on the order of 10 watt-hours [36 kJ, or the energy content of 2-3 M&Ms]. That may not sound like much relative to typical US household daily usage (30,000 watt-hours), but multiplied by O(10^8) queries/day, and it's equivalent to a small city. And that's just for one product out of many. The expectation is 3-10x gro

    • Re: (Score:2)

      by sinij ( 911942 )

      is every single person on /. Thinks that they are an irreplaceable snowflake

      When AI finally arrives, I expect /. shitposting to be specially tailored to my needs. Meanwhile...

    • They're counting on Nvidia's hardware and software to replace trillions of dollars of jobs.

      Have you used AI? It's absolutely terrible.

    • Your funny! Blame and whining, that will get you to your goals!

    • They're counting on Nvidia's hardware and software to replace trillions of dollars of jobs.

      There are many facets to potential AI use cases.

      Some are counting on AI to make existing jobs obsolete. This is not necessarily a bad thing, as long as workers can migrate to better paying and less demanding jobs. However, some will need help during this migration.

      Some hope that AI enables new markets and creates new jobs.

      Some hope that AI enables new functionality that potentially changes lives, like self-driving cars, elderly or child care, or medical monitoring or diagnosis.

      Some are hoping that AI improv

  • Bubble time? (Score:3, Interesting)

    by Anonymous Coward on Wednesday June 05, 2024 @05:46PM (#64525999)
    The air is getting mighty thin up here... this kind of meteoric rise can't be sustainable. Is the boom due to turn into a bust?

    Then again, the market can stay irrational a long time.
  • While NVIDIA will destroy some jobs in their run, the megacorps like Microsoft/OpenAI, Google, and Meta maybe dumping $10B's on NVIDIA only in the short term but will ultimately develop their own and/or find cheaper alternatives. Net result: NVIDIA's stock will be a slower-moving version of IOmega's stock. While there is no value-investing potential here, shorting now would be premature.

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