Nvidia’s share in a surprise turn of events saw the firm gain as much as 11% on Wednesday as software giant Microsoft announced its commitment to AI infrastructure. This decision has shaken the tech industry, which has caused the investors and analysts to restrategize their next move.
This is a report of the latest development for tech investors who in the past days saw the value of almost $500 billion being removed from Nvidia’s market within a couple of weeks. However, the courage of Microsoft has given a big shot of confidence into a market chip stocks like Arm and AMD have also seen substantial rise.
The center of this development is actually the increased symbiotic relationship between Big Tech giants and their chip suppliers. This investment means that Microsoft and companies like Nvidia get the leverage. It’s the phenomena of “a rising tide lifts all boats,” and investors are observing.
Is AI investment solely driven by consumers’ unstoppable demand for AI? The answer is to be found in the rapid development of companies like OpenAI’s ChatGPT which have left tech companies in a scramble to keep pace. With Google, Amazon, Microsoft, and Meta together spending tens of billions on data capacity and safety, it’s obvious that AI is about to take over.
