How NVIDIA Became a $3.34 Trillion Giant

NVIDIA claimed the crown of the most valuable company On 18 June 2024 by overtaking Microsoft, Apple, Samsung, and Alphabet.

The Beginning of NVIDIA

NVIDIA was founded by Jensen Huang and two partners in 1993 and this was the time where there journey began. Somehow, the concept of the company came in a diner called Denny and they observed a large gap in the computing performance, specially for graphical work loads; at first they did not had a name for the company and they later found out that “invidia” was a Latin word meaning envy, which represents the company’s desire to be at the top and be admired by all the competitors within the tech market. This led to the naming of the company as NVIDIA.

This is how envy became a part of their branding strategies: green-eye logo, and campaign motto “Green With Envy.”

The Revolution of GPU’s

The GeForce 256 is the original release in NVIDIA's "GeForce" product line which released on October 11, 1999. This amazing chip allowed computers to process graphics through parallel computing which breaks downs larger problems into smaller, letting CPUs to handle other tasks. NVIDIA gained popularity as the gamers loved the technology because it improved the visual quality with better effects. Soon enough GPUs became a necessity for game consoles and personal computers.

NVIDIA has always filled this gap by designing better products before rivals like AMD in the course of these years. NVIDIA achieved a first-quarter revenue of $26 billion by 2024 that is way higher than AMD with a $5.5 billion revenue.

NVIDIA's Revolutionary AI Bet

CUDA was developed by the NVIDIA Company in 2006. Originally this name stood for Compute Unified Device Architecture but NVIDIA dropped the common use of the acronym and barely expands it now. While the name seemed quite complex, CUDA was revolutionary for developers, bringing the invention of GPUs for a purpose other than gaming. This included complex computations like video editing, cryptocurrency mining, and most importantly building Artificial Intelligence (AI) models.

This Made NVIDIA backbone of AI development. Companies like Amazon Web Services (AWS) depends on NVIDIA GPUs for its operation and Tesla uses it for its self-driving vehicles.

The Key Role of NVIDIA in the AI Revolution

Indeed, with the current availability of tools such as ChatGPT and generative models, NVIDIA became essential. Today, almost 30 percent of all cloud-based Internet services use NVIDIA GPUs. From making simulation to making art, NVIDIA is at the center of many an operation of AI.

Self-driving, for instance, is honed at Tesla’s Gigafactory in Texas through a supercomputer cluster that uses NVIDIA GPUs, each of which costs $50,000.

Stock Split Strategy: Making NVIDIA Shares Accessible

A 10:1 stock split was another dangerous financial decision that increased the value of NVIDIA and brought shares to the common people. This strategy increased investor attention and increased the company’s stock value in the stock market during the rise of AI investments.

The Future of NVIDIA

There is no doubt that this company remains one of the most innovative company across the technology market despite the fluctuating stock market. The growth of the industry in AI is expected to grow at a very high rate and NVIDIA is at its best position to benefit from it.

In addition to AI, NVIDIA’s GPUs are enhancing operations in medical simulation, digital filmmaking, and virtual reality. The world is moving to the digital era and NVIDIA is already in the front line.

FAQs About NVIDIA

• Who founded NVIDIA?
  NVIDIA was founded in 1993 by Jensen Huang, together with two other partners.
• What is CUDA?
  CUDA is a software technology developed by NVIDIA that teaches graphic processing units to do non-graphics computing which is essential in AI.
• Why are NVIDIA GPUs popular for AI?
  They are ideal for training AI models because they afford parallelism which is unmatchable in other systems.
• What is a 10:1 stock split?
  It does not tamper with the ordinary investment value of shares but makes them more easily saleable by subdividing each share into ten shares.
• What industries rely on NVIDIA GPUs?
  From artificial intelligence to virtual reality, cloud computing and gaming, medical research and many others.