The tech world has seen a massive shift in the pecking order of the most valuable companies. NVIDIA, the world leader in graphics processing units (GPUs), has dethroned Microsoft to become the top player, with a market cap surpassing $3.3 trillion (₹3.7 lakh crore) as of June 18, 2024.
What’s driving NVIDIA’s dominance? Of course there’s a whole lot of AI, but NVIDIA’s cooking a lot more. Let’s dive in and find out.
NVIDIA’s GPUs are at the heart of the world and India’s booming artificial intelligence (AI) industry. According to a NASSCOM report from 2023, the Indian AI market is expected to hit ₹1.8 lakh crore by 2025. NVIDIA’s GPUs, known for their unparalleled parallel processing capabilities, are the best in the business for complex AI algorithms used everywhere — from Aadhaar’s facial recognition to advanced medical diagnostics.
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Major Indian cloud providers like TCS Ion, Jio Platforms and Yotta rely on NVIDIA’s Tesla series GPUs to deliver top-notch AI services — with some even starting their shift to NVIDIA’s more powerful A100 and H100.
The rise of cryptocurrencies like Bitcoin and Ethereum has boosted the demand for powerful GPUs all over the world, especially in the last decade. Here again, NVIDIA’s efficient architecture makes their GPUs ideal for crypto mining. Exactly how much NVIDIA has made from selling GPUs to crypto miners is anyone’s guess, as the company never listed mining as a separate revenue stream, lumping it under the gaming segment. But make no mistake, it was no small change.
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Just look back at the massive GPU shortage of 2021, which was partly due to the spike in demand for mining rigs driven by soaring crypto prices. While the crypto market can be volatile, the ongoing interest in mining means NVIDIA is set to benefit from this trend going forward as well.
The shift to remote work all around the world, including here in India, due to the pandemic years, especially in the IT and software development sectors, has increased the need for powerful workstations. NVIDIA’s RTX series GPUs, known for their performance, are a popular choice among Indian professionals working from home, as far as I can tell. More working professionals and consumers have realised it’s better to have one powerful laptop for both work and play than invest in different gadgets for different use cases, ensuring sustained demand for PCs and laptops with NVIDIA hardware in them (wherever possible).
NVIDIA doesn’t seem to be resting on its AI laurels anytime soon, as it has plenty going on with its Omniverse and DRIVE platform, in particular. The Omniverse is a real-time simulation and collaboration platform that enables global architects to design buildings and surgeons to practice complex procedures in virtual spaces. Crucial for fast-tracking autonomous vehicles, NVIDIA’s DRIVE platform processes vast sensor data to make real-time decisions, positioning the GPU maker as a key player in self-driving technology.
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