Nvidia Corp has led the global rally picked up by new-age tech stocks in 2023, rising as high as over 196 per cent in the first six months after artificial intelligence (AI) took center-stage this year. AI opened up a Pandora’s Box of possibilities for new age tech stocks, with Nvidia riding the wave furthest till July 2023.
OpenAI-owned ChatGPT’s rapid success has prompted tech giants such as Alphabet and Microsoft to make the most of generative AI, which can engage in human-like conversation and craft everything from jokes to poetry.
Last year, several major tech companies such as Microsoft, Nvidia and TSMC saw their share price take a severe hit between January and December, with Tesla experiencing the greatest fall of 72.97 per cent, according to ‘2023 Investment Index’ report by forexsuggest.com.
Reversing the trend this year, tech stocks have caught the rally, recouping their losses and setting record-breaking peaks, led by Nvidia, and closely followed by Tesla, Meta Platforms, Apple, Amazon, among others.
Nvidia leads the 2023 tech-stock rally
Nvidia has witnessed an uptrend with its share price tripling to 196.36 per cent till July, especially after the company breached $1 trillion in market capitalization, making it the first US chipmaker to join the trillion-dollar club. The chip manufacturer stunned investors by reporting a quarterly profit of more than $2 billion and revenue of $7 billion in May 2023, both exceeding Wall Street expectations.
Nvidia is possibly most widely known for its GeForce range of PC components, such as graphics cards and drivers, and the GeForce NOW cloud gaming service. However, the company has expertise in a much wider range of computing specialisations and services and now styles itself as the ‘world leader in AI computing’, indicating where the focus of development currently lies.
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Nvidia was co-founded in 1993 by Jensen Huang. It proved more successful than its peers at developing chips that turn computer code into the realistic images that computer gamers love, and rode out a wave of consolidation that saw its rivals acquired, bankrupted or merged into larger companies.
Under Huang, the company then pushed its technology into new markets, such as data center servers and artificial intelligence processing — a move that’s proving prescient today. In less than a decade, Nvidia’s data center business has grown from $300 million in annual revenue to $15 billion. The chipmaker has won orders to equip giant computing factories by successfully arguing that graphics chips can handle AI workloads better than more standard processors.
Tesla took second place with an increase in its share price of 158.58 per cent across the first six months of 2023. As a leading producer of electric vehicles when many countries are producing plans to phase out vehicles with oil-consuming combustion engines, Tesla is positioned to be in the right place at the right time, according to forexsuggest.com
Meta Platforms, the owner of Facebook, Instagram, Whatsapp and, most recently, Threads, saw the third highest increase in share price in the six months from January 2023 at 129.29 per cent. Meta is a leading technology company with strong ties to the social media and VR sectors with an AI-focused subsidiary, Meta AI, which will be looking to take advantage of recent developments in the field.
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