One of the biggest winners from ChatGPT’s surging popularity is chipmaker Nvidia, whose chips power many of the systems.
Key Details
- Chipmaker Nvidia has become the go-to company to power artificial intelligence (AI) systems making it a big winner with ChatGPT.
- The rapid growth of ChatGPT usage could result in sales of $3 billion to $11 billion for Nvidia over 12 months, according to estimates from Citigroup.
- Wall Street estimates the company could make the most significant profit from the AI service. Considering Nvidia’s 35% stock jump so far this year, the estimates look to be good.
Why it’s news
OpenAI’s ChatGPT has been taking social media by storm as the AI chatbot has been going viral for its artificial capabilities.
Users can ask ChatGPT informational questions and receive paragraphs with information similar to Wikipedia, but they can also request that the bot perform more complex tasks like writing movie scripts.
The bot has exploded in popularity and is receiving significant investments, such as a $10 billion investment from Microsoft.
Another company is winning as ChatGPT continues to rise in popularity—Nvidia.
Nvidia is a graphic cards company that started out creating computer chips to create graphics for video games, but has recently become a dominating player in the AI space.
Many AI programs have begun relying on Nvidia’s chips to power things, from autonomous cars to services like ChatGPT.
“ChatGPT kind of started an arms race,” says senior Susquehanna Investment Group analyst Christopher Rolland. “Nvidia is far and away the leader.”
The rapid growth of ChatGPT usage could result in sales of $3 billion to $11 billion for Nvidia over 12 months, according to estimates from Citigroup Inc.
Nvidia’s stock has jumped over 35% so far this year as artificial intelligence continues to boom in popularity.
“There’s obviously a lot of noise around ChatGPT,” says Stifel Nicolaus managing director Ruben Roy. “A semiconductor company like Nvidia is the best way to play AI.”
