While cryptocurrencies are not the center of attention for risk markets, artificial intelligence has gained much more traction, especially since November 2022. People have been convinced of the tangible benefits of AI with the advent of OpenAI’s ChatGPT, which has now reached a vast user base with thousands of new language model products. This enthusiasm has naturally benefited chip manufacturers.
Nvidia Hits $1.7 Trillion Market Value
Artificial intelligence interest has been exponentially growing since November 2022. Last year, we saw massive growth in AI-focused cryptocurrencies as well. However, Nvidia’s shares have experienced growth that would make most cryptocurrencies envious. AI requires processing power, and Nvidia is exporting this to the world.
As the application area expands, the need for more hardware grows. This demand is not expected to wane anytime soon. The Kobeissi Letter pointed out that Nvidia had a market value of around $950 billion at the end of October and added $750 billion to its market value in just 70 trading days.
“In other words, Nvidia added $750 billion to its market value in 70 trading days. This means an average of $10.7 billion per day over 70 consecutive trading days.”
Cryptocurrencies and Artificial Intelligence
Nvidia’s market value is more than six times that of the largest altcoin, Ethereum. It’s double that of Bitcoin and has seen growth equivalent to the market value of Tron every day for the last 70 days. Considering all this, the potential growth in the AI sector alone appears massive. People are flocking to this field, expecting even more growth in the future.
Nvidia is about 3% away from surpassing Amazon to become the world’s fifth-largest public company. Kobeissi noted that just two years ago, Nvidia was among the top 20 largest companies in the world, highlighting this achievement.
“Now, they control 70-90% of the global AI chip market. Artificial intelligence has made Nvidia one of the greatest companies of all time.”
If the share price, which exceeded $700 on February 5th, slows its rise at some point, investors may show more interest in cryptocurrencies. For now, Nvidia’s earnings are competitive with crypto, and its story appears more attractive, so the interest remains here.
