When we look back at 2023, a phenomenon that cannot be ignored is the madness of NVIDIA's market capitalization**. Over the past year, Nvidia's market capitalization has grown by a staggering 238% and continues to rise strongly in 2024, again by nearly 50%, a performance that has undoubtedly put tremendous pressure on Wall Street bears and investors who are afraid of the sky.
Back in 2016, Nvidia founder and CEO Jensen Huang personally delivered graphics cards to Tesla CEO Elon Musk, which became an important signal for the outside world to interpret Nvidia's bet on artificial intelligence. Although at the time, the concept of artificial general intelligence (AGI) was still considered to be close to civilian science, Nvidia's investment in AI was clearly quite forward-looking. Even Jeff Hinton, an authoritative scholar in the field of artificial intelligence, once asked Nvidia to provide graphics cards to support his research, and although he was rejected, it also reflects Nvidia's confidence in its own products.
Before Nvidia decided to support OpenAI, Huang's focus was mainly on mobile chips and automotive chips. In 2013, Huang and Lei Jun shared the stage for the Xiaomi Mi 3's processor. However, due to technical issues, Nvidia's mobile chip business did not develop as expected, and eventually ceded the market to Qualcomm and MediaTek. This failure has also allowed Nvidia to focus more on its core business.
**10,000 Fans Incentive Plan
At the same time, NVIDIA's layout in the automotive chip market is also worth paying attention to. Although the long-term revenue contribution of the automotive chip business is not high, Nvidia has never given up on this field. In Huang's plan, the auto business should account for 30 percent of revenue. Although this goal still takes time, NVIDIA's potential in the automotive chip market cannot be ignored.
With the continuous advancement of artificial intelligence technology and the development of self-driving cars, NVIDIA's investment in AI and automotive chips is gradually turning into a real growth driver. This not only brought a leap in market value to NVIDIA, but also provided strong technical support for the progress of the entire industry. However, as Nvidia's valuation continues to climb, investors should also pay attention to whether its performance can continue to support high valuations. In this era full of uncertainties, it will take time to prove whether Nvidia can continue to lead.
As Huang said, there is huge potential in the field of automotive chips and is expected to create a new chapter of growth for NVIDIA.