Nvidia rose by more than 200% throughout the year?

If you want to ask which sector was the most popular in the capital market last year? If you want to ask which company is the best chip stock? Nvidia is undoubtedly the best among them. Last year, Nvidia rose by more than 200%, and chip stocks became the biggest winners.

1. Nvidia rose 200% throughout the year?

According to a report by Fast Technology, according to media reports, U.S. chip stocks will rise by as much as 65% in 2023, the largest increase in 14 years, with AI chip manufacturers such as Nvidia and AMD contributing to it. According to the report, the Philadelphia Semiconductor Index rose 65% for the year, the largest annual increase since 2009.

Among them, Nvidia is undoubtedly the most concerned, with its stock price rising by more than 200%, becoming the first chipmaker with a market capitalization of more than one trillion dollars.

AMD's stock price has also risen nearly 130% in 2023, driven by a significant increase in the overall stock price due to strong gains from Nvidia and AMD. And of the 30 constituents of the Philadelphia Semiconductor Index, only Wolfsbider & Co. fell, with its shares down 37% for the year, largely due to problems with new factories. Notably, chip design company ARM also went public in September 2023, with a cumulative gain of nearly 60% since its October low.

According to a report by IT Home, Nvidia CEO Jensen Huang's worth soared to a staggering $44 billion in 2023 (IT Home note: currently about 313.28 billion yuan), becoming one of the highest-paid entrepreneurs in 2023. That's an increase of $30.2 billion from the beginning of the year, putting Huang at No. 29 on the Bloomberg billionaires list.

Investors' confidence in Nvidia leading the AI revolution is the main driver of the surge in its stock price. Huang owns about 3.5 percent of Nvidia, and his nearly 87 million shares of the company are currently worth about $43 billion.

Second, how to see chip stocks become the biggest winners?

2023 has passed, and looking back on this year, the performance of global stock markets can be described as ups and downs. However, among many stocks, the performance of chip stocks is particularly eye-catching, among which Nvidia (NVIDIA) has risen by more than 200% and has become the focus of investors' attention.

First of all, Nvidia's surge is undoubtedly expected. In 2023, with the rapid development of the large model market, the demand for artificial intelligence will surge, bringing huge demand to chip products. As a leader in artificial intelligence chips, NVIDIA's high-quality chip products allow it to occupy a strong market competitiveness in the market. In addition, NVIDIA's technological superiority in the GPU field has also brought it a huge market share. Therefore, driven by market demand and technological innovation, NVIDIA's stock price has become an inevitable phenomenon in the market.

Secondly, NVIDIA's high-quality chip products allow it to occupy a strong market competitiveness in the market. On the one hand, NVIDIA's product design and R&D strategy are closely aligned with market demand. Its GPU products not only maintain a leading position in gaming, virtual reality and other fields, but also occupy a dominant position in data centers, cloud computing, high-performance computing, and artificial intelligence training and inference. Especially for deep learning Xi, NVIDIA's GPU meets the needs of parallel computing of a large amount of data with its parallel processing capabilities and CUDA architecture optimized for AI, making the company occupy more than 60% of the AI chip market, forming a significant competitive barrier.

On the other hand, NVIDIA has shown foresight and flexibility in its business layout, continuously increasing R&D investment, and expanding its business territory through mergers and acquisitions, further consolidating its leadership position in the AI field. For example, its strong performance in the AI server market and its partnerships with many hyperscale cloud service providers have resulted in steady revenue growth for the company.

Third, despite Nvidia's remarkable achievements, the entire chip industry still faces some challenges. On the one hand, the traditional chip market has entered a saturation period, and the cold winter of the consumer electronics market has also brought a lot of impact to the chip industry. On the other hand, although the market demand for artificial intelligence chips is huge, the competition is also extremely fierce. Many companies are competing to develop artificial intelligence chips, which makes the products on the market seriously homogeneous, which puts a lot of pressure on companies.

Fourth, in the face of the current great changes in the chip industry, achieving long-term sustainable development is a problem that all chip companies must face. NVIDIA needs to continue to innovate to stay ahead of the curve in the evolution of AI technology, and at the same time, it needs to focus on expanding its diverse application areas to withstand the risks of single market fluctuations. In addition, the macro-level impacts of global supply chain security, geopolitical factors, and the green energy transition cannot be ignored, which will jointly shape the future pattern of the chip industry.

Therefore, behind NVIDIA's annual surge of more than 200% is the rapid development of the artificial intelligence market and NVIDIA's leading position in this field. However, the current development prospects of the chip industry are still facing challenges, and enterprises need to actively respond and seek new development opportunities.