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@ Aeraryum
2024-12-01 09:05:56
In recent months, has made significant strides towards becoming one of the most valuable companies in the world. With its market capitalization soaring, it has established itself as the third member of the exclusive $3 Trillion club, joining Apple and Microsoft as the only three companies to have reached this milestone.
To understand the company's journey, let's take a step back in time to 2016. At that point, Nvidia's main business was predominantly graphics cards for video games and computer visualizations. However, a second market began to grow: GPU based high-performance computing (HPC). The graphic cards were able to outperform traditional CPU solution in certain HPC applications. This showed that the powerful hardware Nvidia builds is capable of more than just graphics.
### The Acquisition of Mellanox
In 2019, NVIDIA made its first significant move towards expanding its portfolio by acquiring Mellanox Technologies for $6.9 billion. This strategic acquisition gave Nvidia access to a wide range of interconnect products and technologies that would enable the company to expand into new markets and industries. Mellanox products have been essential in the HPC world for a long time. The interconnect technology proved as very beneficial in hindsight.
### The Crypto Boom and GPU Shortage
Then the cryptocurrency market experienced a significant boom, which had an unexpected impact on Nvidia's business. As more individuals and organizations turned to GPUs for mining purposes, a shortage of the GPUs emerged. This even effected consumer Graphics card for gaming. Prices skyrocketed, and Nvidia's revenue surged as it became a crucial supplier of GPUs to meet this growing demand. But this revenue was not sustainable. https://image.nostr.build/f1bf652db9565e68bd668be70cfa4453a242047eba6959096cf0b4a45370b0c6.jpg
### The Failed Acquisition of ARM
In 2022, another significant move by Nvidia made was stopped. Earlier, they announced their intention to acquire ARM Holdings for $40 billion. However, the deal was eventually blocked by regulatory bodies around the world due to concerns about competition and market dominance. Although the acquisition did not go through, it highlighted Nvidia's willingness to expand its portfolio and increase its presence in the technology industry.
### The AI Hype and Rise to New Heights
Fast forward to November 2022, when ChatGPT's release of a large language model sent shockwaves throughout the tech industry. This event marked the beginning of an unprecedented artificial intelligence hype, which has propelled Nvidia's stock prices to new highs. The company's latest GPUs have been hailed as the most powerful for AI applications, driving demand that seems insatiable. https://image.nostr.build/c63ccb875f44ba1e13475390332a4f423691da0f1bb3953ca107dcd4b4ccd561.jpg