The stock prices of Nvidia, an American chip manufacturer, have skyrocketed. This surge is fueled by investors who are recognizing the immense potential in Nvidia's graphics processing unit (GPU) business, which supports the functionality of ChatGPT.
According to a report from Business Insider, Nvidia's stock has risen by up to 165 percent since the beginning of 2023 until last week's Thursday (May 25, 2023).
On January 3, Nvidia's stock was trading at around $143 per share. However, by Thursday (May 25, 2023), the stock had reached a price of approximately $379 per share.
Taking into account the latest data from the US stock market as of the end of last week, Friday (May 26, 2023), Nvidia's stock had surpassed $389 per share, marking a 172 percent year-to-date (YTD) increase.
The surge in Nvidia's stock price in 2023 is believed to be driven by the popularity of ChatGPT, an artificial intelligence (AI) chatbot created by OpenAI.
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| Nvidia (Source: mungunboroo) |
ChatGPT has gained significant usage among individuals who seek assistance with their daily tasks, as it can provide easily understandable responses to a wide range of user questions and queries.
Behind this impressive capability lies the support of thousands of graphics processing units (GPUs) that enable ChatGPT to function effectively.
ChatGPT relies on an artificial intelligence infrastructure or machine provided by Microsoft, known as Azure. This Microsoft Azure platform is powered by tens to thousands of Nvidia GPUs.
In a blog post, Microsoft explains the inner workings of ChatGPT, revealing that it operates on a network of interconnected Nvidia A100 or H100 AI GPUs within the Microsoft Azure network.
During the process, ChatGPT's workload, especially after receiving user responses or queries, is evenly distributed across tens to thousands of Nvidia GPUs within the Azure infrastructure.
Each GPU within a single infrastructure rapidly exchanges information, allowing ChatGPT to deliver accurate and easily understandable responses in a short amount of time.
The success of ChatGPT has also made Nvidia investors aware of the business opportunities associated with Nvidia's AI-based GPU technology, as reported by Metis Media from Markets Business Inside on Tuesday (May 30, 2023).
Ultimately, this has generated positive sentiment among investors and propelled the surge in Nvidia's stock prices in 2023.