Nvidiaโs Success in Stocks and Artificial Intelligence
In recent days, Nvidiaโs stock actions are going slightly better than expected. It has nothing to do with Bitcoin mining: the success is instead related to artificial intelligence.
Nvidia stocks and Bitcoin mining
Nvidia is one of the largest producers of computer graphics cards in the world, but it is also the leading producer of chips for artificial intelligence. In the past, its very powerful graphics cards have been widely used in the field of crypto mining. Initially, they were also used for Bitcoin mining, but they were later replaced by the so-called ASICs, devices designed to perform a single task, in particular the extraction of hashes.
- ASICs have greater computing power and efficiency
- Graphics cards continued to be used for mining Ethereum until September 2022
- Today they are still used for mining alternative cryptocurrencies
The cost of graphics cards
In the past, until the transition of Ethereum to Proof-of-Stake, the most powerful graphics cards were in such high demand from the mining market that their prices had skyrocketed. However, with Ethereumโs transition and decreased usage for Bitcoin mining, prices have normalized.
Nvidia stocks and artificial intelligence, not just Bitcoin mining
A completely different story is the one that links Nvidia to artificial intelligence. Professional machines that work using artificial intelligence need very powerful chips. Nvidia over time has also specialized in this very promising field, becoming a dominant provider of hardware and software for this type of use.
The doubts of 2024
Doubts began to arise during the new year regarding a real speculative bubble around Nvidia stock on the stock market. However, despite fears of a collapse due to unsustainable price levels, Nvidia recorded impressive revenue growth in the fourth quarter of 2023.
Hot Take: Stay Tuned!
While doubts about Nvidiaโs stock continue to linger, its success in artificial intelligence remains strong. Keep an eye on future developments as Nvidia navigates through potential speculative bubbles and maintains its position as a leader in both graphics cards and AI chips.
Leo Nomist emerges as a maestro harmonizing the roles of crypto analyst, tenacious researcher, and editorial virtuoso, creating an unparalleled symphony of insight. Amidst the intricate world of digital currencies, Leo’s perspectives resonate like finely tuned chords, capturing the attention of curious minds from diverse horizons. His talent for deciphering complex threads of crypto intricacies blends seamlessly with his editorial finesse, translating intricacy into a captivating composition of understanding.