The secret behind the surge in Nvidia's (NVDA) market value!
Recently, you may have heard about a very popular company - Nvidia (NVDA). As the AI craze has been ignited again, especially after the release of Nvidia's financial report, its stock price has risen straight up like a rocket! Today, let's reveal the reasons behind this.
Overview of stock price and market value:
Current stock price: up to $1150! Market value: an astonishing $2.84 trillion, ranking third in the world! Second only to Apple (AAPL), the gap with Microsoft is not big.
This market value is not a joke, it reflects investors' extremely high expectations for Nvidia's future. But a high price-to-earnings ratio also means that the risk is relatively high, so novice friends should be cautious!
"Android" Alliance Challenges "IOS" Nvidia?
At the beginning of this year, Google, Intel and other technology giants jointly created an alliance called UXL, wanting to create an open source AI technology ecosystem. Guess who they want to challenge? Yes, it's the "IOS" of the new era - Nvidia!
Why do so many big names want to join forces to fight NVIDIA? The reason lies in NVIDIA's dominant position in the field of AI. This position is not only because of its hardware, but more importantly, its core support - the "CUDA" computing power ecosystem.
CUDA - NVIDIA's "Translator"
You can think of CUDA as a "translator". In the past, programmers had to use various complex languages to program, but after the emergence of CUDA, it can quickly translate these languages into "words" that NVIDIA GPU can understand.
In this way, NVIDIA not only changed the use scenario of GPU, but also made everyone more and more inseparable from its CUDA ecosystem. Now, there are a full 4 million developers using this ecosystem!
The "secret weapon" that is not open source
Although some people may not buy NVIDIA chips, they cannot do without the CUDA ecosystem. Because it is so easy to use, everyone is used to it. More importantly, if you change to a new ecosystem, the difficulty of data migration and work will increase greatly. Since there is a simple and convenient choice, why bother yourself?
The core of the Technology Alliance's desire to challenge NVIDIA lies in this non-open source CUDA ecosystem. It is like Nvidia’s “secret weapon”, making the entire chip and AI fields follow its rhythm.
Risk Warning
Of course, although NVIDIA is very popular now, investment is always risky. Especially with such a high price-earnings ratio now, novice friends must be careful! Don't blindly follow the trend when you see the stock price soaring.
In short, NVIDIA's success is not accidental. It has occupied a leading position in the market with its powerful technology and unique ecology. But the investment market is always unpredictable, so everyone must be fully prepared and risk assessment before investing!
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