Nvidia Approaches Trillion-Dollar Mark on AI Use

    Nvidia Approaches Trillion-Dollar Mark on AI Use
    Photo: Wikimedia Commons

    The Facts

    • After surpassing Wall Street estimates for the first quarter of 2023, Chipmaker giant Nvidia’s stock rose around 26% on Thursday, increasing its value from around $196B to almost $1T at approximately $951B.

    • The company recorded a revenue of $7.19B for Q1 as well as earnings per share of $1.09, in comparison to estimates of approximately $6.5B and $0.92, respectively.


    The Spin

    Narrative A

    The current euphoria surrounding Nvidia won’t last forever. While riding high on the AI hype and beating market expectations, Nvidia’s revenue still decreased from 2022’s Q1. Furthermore, Nvidia’s gaming division also saw disappointing results. With these factors being considered, the now highly anticipated Q2 results this year may not be as rosy as many have forecast.

    Narrative B

    Nvidia’s soaring stock price isn't a bubble that’s going to burst. Its CEO has a track record of executing his vision strongly, and the company is leading the chip market and continuing to pour money into its expanding AI services. While, like many seismic stock increases, we may see a slight dip in the near future, Nvidia is on course to continue its success.

    Nerd narrative

    There is an 85% chance that Metaculus will continue to advise that AI poses a global catastrophic risk by 2040, according to the Metaculus prediction community.



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