Nvidia Corp NVDA greatly benefited from the generative AI surge initiated by OpenAI's launch of ChatGPT in November 2022, a decision that became a milestone in artificial intelligence.
OpenAI's CEO Sam Altman was initially still determining whether to release ChatGPT to the public.
Still, its release marked a significant investment and product development influx in 2023 across various industries, including financial services and biomedical research, CNBC reports.
A July survey highlighted that 95% of utility and energy companies were considering generative AI technologies.
Nvidia, a key player in this advancement, saw a remarkable increase in its financial performance.
The company's net income soared to $17.5 billion in the first three quarters of 2023, a sixfold increase from the previous year, with its stock value jumping 237%.
This growth reflected the widespread use of Nvidia's GPUs in large language models that OpenAI and other tech giants developed.
The generative AI field expanded rapidly, influencing many sectors. OpenAI's ChatGPT, with about 100 million weekly users and adoption by over 92% of Fortune 500 companies, led the chatbot revolution.
Wall Street analysts kept Nvidia at a higher pedestal versus Advanced Micro Devices, Inc AMD as the provider of the entire computing stack, translating into solid efficiencies and competitive advantages.
The analysts see Nvidia maintaining its leading 75%+ market share position as the biggest beneficiary of the growing AI accelerator market.
Price Action: NVDA shares closed higher by 0.28% at $494.17 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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