Why do Nvidia’s chips dominate the AI market?

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The firm has three big advantages

) as much as Nvidia. Since January 2023 the chipmaker’s share price has surged by almost 450%. With the total value of its shares approaching $2trn, Nvidia is now America’s third-most valuable firm, behind Microsoft and Apple. Its revenues for the most recent quarter were $22bn, up from $6bn in the same period last year. Most analysts expect that Nvidia, which controls more than 95% of the market for specialistchips, will continue to grow at a blistering pace for the foreseeable future.

A high-performancecan have more than a thousand cores, so it can handle thousands of calculations at the same time.models, it focused on optimising them for that market. Its chips have kept pace with ever more complexBut Nvidia’s soaring valuation is not just because of faster chips. Its competitive edge extends to two other areas. One is networking. Ass lashed together to boost processing power .

 

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