FameEX Hot Topics | Nvidia Exceeds Tesla as the Most-Traded Stock with a 265% Surge in AI Revenue

Nvidia has recently made headlines by becoming the most-traded stock on Wall Street in the United States, surpassing the trading volumes of Elon Musk's Tesla over the past 30 trading sessions. This noteworthy development highlights Nvidia's substantial growth and its influential role in the technology sector, especially within the artificial intelligence (AI) domain.

As a leading manufacturer of graphics processing units (GPUs), Nvidia has experienced a remarkable 265% surge in year-on-year revenue, driven by the global demand for AI technologies. The company's financial performance in the fourth quarter showcased a $22.1 billion revenue, which represents a 22% increase from the third quarter and an impressive 265% growth from the previous year. Jensen Huang, Nvidia's CEO, attributed this significant success to the worldwide need for accelerated computing and generative AI technologies, which has propelled Nvidia's market capitalization to $1.67 trillion, underscoring its dominance in the tech industry.

A Reuters report emphasized Nvidia's overtaking of Tesla in terms of trading volume, with about $30 billion in Nvidia shares traded in the last 30 sessions compared to Tesla's average trading volume of $22 billion during the same period. This shift indicates the tech community's recognition of Nvidia's importance and Tesla's continued investment in AI, including a significant procurement of Nvidia's AI hardware in 2024 valued at over $500 million. Musk highlighted the critical investment needed to remain competitive in the AI sector.

Tesla's strategic acquisitions of AI hardware from Nvidia and AMD underline Nvidia's central role in driving AI innovation. The Nvidia RTX series, introduced in September 2018, has been embraced by generative AI enthusiasts, gamers, and creators, contributing to Nvidia's Q3 2023 revenue of $18.1 billion and a solid market cap of $1.2 trillion.

Yann LeCun, Meta's Facebook AI Research (FAIR) chief AI scientist, acknowledged Nvidia's supremacy in the AI hardware market, emphasizing the company's crucial contribution to the AI arms race. LeCun's remarks highlight Nvidia's essential role in providing the technology that powers AI advancements, reinforcing its status as a leading force in the technological evolution of the industry.

Nvidia's trajectory in the financial markets and its strategic positioning in the AI hardware sector showcase the company's pivotal influence and success. As AI technologies continue to evolve, Nvidia's contributions are set to play a significant role in shaping the future landscape of the tech industry, demonstrating the company's enduring impact and leadership.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.