According to U.Today, James Check, a lead analyst at Glassnode, has reported that Nvidia, the tech giant, has now surpassed Bitcoin in terms of search interest. Last week, Nvidia outperformed Microsoft in market capitalization, making it the world's most valuable company for the first time. The Santa Clara, California-based company's shares have risen by an impressive 162% due to the ongoing artificial intelligence (AI) boom. Nvidia holds approximately 90% of the GPU chip market, which is why it is thriving in the current AI-focused tech era.
A recent report by Bloomberg revealed that Wall Street is finding it challenging to predict Nvidia's revenue as it is unclear how many GPUs the company will sell given the increasing demand. Nvidia is currently the most expensive stock in the S&P 500 following its significant surge this year. While this valuation may seem justified due to the skyrocketing demand for GPUs, some analysts are also worried about the stock being in an AI-driven tech bubble. Nvidia's headline-making rise has been compared to that of computer giant Cisco. In March 2000, Cisco briefly outperformed Microsoft to become the world's most valuable company, with its market cap exceeding $575 billion. For comparison, Cisco's market cap currently stands at only $190 billion, less than half of its peak value 24 years ago.
Last week, The Information reported that Nvidia CEO Jensen Huang expressed concerns about Nvidia potentially becoming a fad like Cisco. His primary concern seems to be the lack of sufficient data center space for installing the company's AI chips.
