AI and the Chip War: Why Nvidia Became a $3 Trillion Company
- Nvidia’s stock price soared, making it one of the most valuable companies in the world, briefly hitting a $3 trillion market cap.
- Its success is directly tied to its powerful GPUs, which are the essential “picks and shovels” for the AI gold rush.
- The high demand has created a global shortage of these advanced chips, highlighting a new kind of geopolitical competition.
Every major AI model, from ChatGPT to Gemini, runs on powerful computer chips called GPUs. And Nvidia makes the best ones. As every company on earth races to build AI, they are all buying from Nvidia, turning it into a tech titan almost overnight.
This has triggered a global “chip war,” with the US, China, and Europe all investing billions to build their own semiconductor supply chains.
Nvidia’s rise is a clear indicator that AI isn’t just software; it’s a hardware revolution, and whoever makes the best hardware holds immense power.
Source: Reuters – “Nvidia hits $3 trillion market cap, overtakes Apple”, Published: June 5, 2024
