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With the explosion of the generative AI market early last year, a technological revolution is quietly changing the landscape of the global tech industry. This revolution has not only profoundly affected the application and development of AI technology, but also led to the vigorous development of related industrial chains, among which the demand for AI chips is particularly hot. It directly promoted the stock price of Nvidia, a leading AI chip company, to continue to rise.
According to the latest data, Nvidia's stock price has almost tripled in just one year, a growth rate that is rare in the technology industry. On October 8, Nvidia's stock price rose more than 2%, and its market value climbed to $3.13 trillion, successfully surpassing Microsoft's $3.04 trillion market capitalization to become the world's second-largest company.
Nvidia founder and CEO Jensen Huang also gained a lot from this tech feast. According to the latest data from the Bloomberg Billionaires Index, Huang's personal wealth has soared to $109 billion, ranking him 13th on the list of the world's richest people. Not only surpassing many well-known entrepreneurs and investors, but also surpassing the total market capitalization of Intel Corporation ($96.5 billion).
In May this year, Nvidia announced that its results for the first quarter of fiscal year 2025 exceeded expectations across the board, providing strong support for the company's stock price to rise. Among them, the revenue of the data center business reached 22.6 billion US dollars, an increase of 427% over the same period last year, and once again refreshed a record high. In terms of total revenue, Nvidia recorded revenue of $26.04 billion, an increase of 262%. In terms of net profit, the company achieved a profit of 14.88 billion US dollars, an increase of more than 6 times year-on-year.
Analysts said that given the strong trend of AI spending and seasonally positive, Nvidia shares are still likely to rise further and may eventually overtake Microsoft and Apple in the long term.
An AI chip is a common type of specialized chip that has some common features. First, AI chips can perform more calculations in parallel than CPUs, improving computational efficiency. Secondly, the AI chip can successfully implement the AI algorithm in a low-precision computing mode, while reducing the number of transistors required for the same calculation and improving the computing efficiency. In addition, by storing the entire algorithm in a single AI chip, memory access can be accelerated, increasing data reading speed. Finally, AI chips use specialized programming languages to efficiently translate AI computer code for execution on AI chips, thereby improving the efficiency and speed of AI calculations.
The AI chip industry is still in the development stage
The underlying hardware AI chip, the core of artificial intelligence, has experienced many ups and downs and twists and turns, and has been continuously upgraded and improved since its birth. In 2006, Hinton published a paper on "Multi-layer Neural Networks", which proved the possibility of large-scale deep learning neural network learning, and AI chips have developed rapidly since then.
In 2014, Dr. Chen's research team released a series of DianNao papers, opening the field of ASIC chip research. With the rapid development of deep learning algorithms, various application fields have higher and higher requirements for computing power, and the traditional chip architecture cannot meet the demand for computing power for deep learning, and artificial intelligence chips that can accelerate computing processing have entered a stage of rapid development.
Global AI chip market size forecast
In 2019, the global AI chip market size was $11 billion. With the increasing maturity of artificial intelligence technology and the continuous improvement of digital infrastructure, the commercial application of artificial intelligence will accelerate the landing, promote the rapid growth of the AI chip market, and the global artificial intelligence chip market is expected to reach 72.6 billion US dollars in 2025.
Jacob Bourne, an analyst at eMarketer, an e-commerce market research firm in United States, said: "As global AI companies continue to rely on Nvidia's chip, network hardware and software ecosystem, Nvidia is able to buck the trend again.
According to the latest forecast of market research agency Gartner, the AI chip market will increase by 25.6% from the previous year to $67.1 billion by 2024, and it is expected that by 2027, the AI chip market is expected to more than double the size in 2023, reaching $119.4 billion. ”
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