James Check, the lead analyst for Glassnode, has noted that tech giant Nvidia has now surpassed Bitcoin in terms of search interest.
As reported by U.Today, the chip maker managed to top Microsoft by market capitalization last week, becoming the most valuable company in the world for the first time.
The shares of the Santa Clara, California-headquartered company are up a staggering 162% due to the ongoing artificial intelligence (AI) boom. Nvidia accounts for roughly 90% of the GPU chip market, which is why it is flourishing during the AI-obsessed era in tech.
According to a recent report by Bloomberg, Wall Street is struggling to predict Nvidia’s revenue since it is not clear how many GPUs it is going to sell amid growing demand.
Nvidia is already the most expensive stock in the S&P 500 following the massive surge this year. While this valuation might seem reasonable due to the exploding demand for GPUs, some analysts are also concerned about the stock being in an AI-fueled tech bubble.
Many have compared Nvidia’s headline-grabbing rise to that of computer giant Cisco. In March 2000, Cisco briefly topped Microsoft to become the world’s most valuable company. The internet equipment maker was riding high during the dot-com boom, with its market cap surpassing $575 billion. For comparison, the market cap of Cisco currently stands at only $190 billion, which is less than half of its peak value 24 years ago.
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Last week, The Information reported that Nvidia CEO Jensen Huang was concerned about Nvidia potentially ending up being a fad just like Cisco. His main concern appears to be that there will not be enough data center space for installing the company’s AI chips.