Most of the Indians Do Not Know About A Company Whose Market Capitalization is equal to Indian GDP

A company whose market capitalization is equivalent to India’s GDP -PRADEEP Gupta 

Do you know that there is a company in USA whose market capitalization is almost equal to Indian GDP. And surprisingly many people in India do not know its name and the line of its business. The company’s name is Nvidia and it’s HQ is based in Santa Clara California, USA. 

There is a big talk of Artificial Intelligence (AI) in the business world as it is going to be the next big thing, and has found itself turning to one maker of computer chips in particular — Nvidia — to power the revolution.

On this Wednesday, Nvidia's market capitalization hit $3 trillion, making it the second-largest publicly traded U.S. company, surpassing Apple and trailing only Microsoft.

Over the past 12 months, Nvidia shares have climbed nearly 200%.

Founded in 1993 — famously, over a meal at Denny's — Nvidia designs a special kind of programmable computer chip. 

For decades, Intel and Advanced Micro Devices had dominated the U.S. chip sector.

But those companies specialized in producing CPUs — central processing units, which serve as the foundation for basic computing and software processes.

Meanwhile, Nvidia, specialized in graphics processing units (GPUs). As their name suggests, GPUs are better able to render images, which meant that they were first associated with video and computer games. 

But it turns out GPUs are also able to perform calculations concurrently in a way that regular CPUs cannot — making them more energy efficient and better able to handle sophisticated computing demands. 

Over time, the other big chip makers began manufacturing their own GPUs to compete — but Nvidia, having enjoyed a first-mover advantage in the space, was where companies began to turn to for GPU needs. 

It combined its chips with a suite of accompanying software that programmers simply preferred. Plus, its supply chain allowed it to produce GPUs in larger volumes, faster, and more reliably, than its rivals. 

For instance, auto companies began turning to Nvidia chips for use in driver-assistance software that must process image information from sensors.Nvidia hardware is now found in all Tesla vehicles.

Still, until 2020, Intel was a larger company by market capitalization than Nvidia. Pandemic surge turns into AI revolution. During the pandemic, the shift to remote work and subsequent demand for data centers that could enable cloud-based computing — plus even more interest in video games while everyone was stuck indoors — accelerated Nvidia’s revenues even further.

Then Silicon Valley, led by OpenAI, began to realize the potential of artificial intelligence to transform how all companies do business.

The Nvidia ecosystem, from its software to its sourcing of materials, allowed it to position itself as the go-to source for companies that needed massive computing power to handle their AI needs.

I saw an interview on CNBC wherein Nvidia’s co-founder and CEO Jensen Huang giving credit to of company’s success to a combination of luck and skill. 

Nvidia’s specialization means it is able to charge a premium for its products. In fact, its chips, which are manufactured in Taiwan, are so unique that companies looking to build AI capabilities are complaining that there is a shortage of them.

PS 

But the most interesting part of story is that 90 percent of Nvidia Chips are being manufactured in a small island called Taiwan which China claims  to be its part. Ofcourse  the cutting edge technologies are  developed in  U.S., U.K., the Netherlands, South Korea and Japan but most of their products are made in are made at the sprawling TSMC factory campus Taiwan.