"Nvidia's report, due after the market closes, has turned into a pulse check on an AI boom that began three years ago when OpenAI released ChatGPT. That breakthrough transformed Nvidia from a mostly under-the-radar chipmaker - best known for making graphics chips for video games - into an AI bellwether because its unique chipsets have become indispensable for powering the technology underlying the craze."
"As OpenAI and longtime Big Tech powerhouses - such as Microsoft, Google, Amazon and Facebook parent Meta Platforms - buy more and more of Nvidia's chips, its annual revenue has soared from $27 billion in 2022 to a projected $208 billion this year. That rapid run-up has fueled a 10-fold increase in Nvidia's market value, which now stands at $4.5 trillion, surpassing Apple, Microsoft and Google parent Alphabet, currently valued in the $3 trillion to $4 trillion range."
Nvidia evolved from a video-game graphics chipmaker into a central supplier for AI workloads after OpenAI's ChatGPT breakthrough. Big Tech buyers including Microsoft, Google, Amazon and Meta have driven demand, pushing annual revenue from $27 billion in 2022 to a projected $208 billion this year. Market value soared roughly tenfold to about $4.5 trillion, surpassing other tech giants. Quarterly results have typically topped analyst forecasts and CEO Jensen Huang has signaled sustained long-term growth despite risks like trade tensions. The upcoming earnings release could either reinforce the AI-led rally or accelerate investor doubts about an overheated valuation.
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