Nvidia's AI Chip Dominance is Breaking Markets

AI chips are front and center for global economic growth.

Nvidia is today in 2024 what Cisco was in 2000. Cisco was valued at a multiple of more than 150 times forward earnings in March 2000, when the stock hit its dot-com era peak.

• So what’s the context? NVIDIA (NVDA) soared 16% the day after reporting its Q4 results.

• Enough to add $277 billion in market value, the largest one-day gain in history.

• With a nearly $2 trillion market cap, the company is now bigger than Amazon (AMZN) and Alphabet (GOOG).

The last few months of Nvidia, being a monopoly in AI chips defines the Generative AI hype movement. Here is the 5-year chart:

Even in a global economy where China, Japan and Germany are in recession or teetering on the brink of it, America appears red hot with technologies like OpenAI’s Sora that are striking fear in the hearts of Hollywood and the Chinese. None of which would be possible without Nvidia’s H100 AI chips.

Nvidia has become a meme-hyperscale stock, and you could make the argument its eating the rest of BigTech.

Nvidia’s event GTC on March 18th, 2024 will be key to understanding its future with the B100 AI chip. Nvidia said that it expected to be supply constrained with its next-generation Blackwell-based GPU products.

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