FameEX Hot Topics | Nvidia Surpasses Tesla in Trading Volume as AI Revenue Soars by 265%

In recent financial news, Nvidia has claimed the title of Wall Street's most-traded stock in the United States, surpassing the trading activity of Elon Musk's Tesla over the last 30 sessions. This shift in trading volume underscores Nvidia's significant growth and impact in the tech sector, particularly in the realm of artificial intelligence (AI).

Nvidia, renowned for its production of graphics processing units (GPUs), reported an impressive 265% increase in year-on-year revenue, a testament to the soaring global demand for AI technology. The company's fourth-quarter financial results revealed a revenue of $22.1 billion, marking a 22% increase from the third quarter and a staggering 265% rise from the previous year. Nvidia's CEO, Jensen Huang, credited this remarkable growth to the heightened demand for accelerated computing and generative AI technologies. With a market capitalization reaching $1.67 trillion, Nvidia's financial success reflects its leading position in the tech industry.

The company's ascendancy over Tesla in trading volume was highlighted by a Reuters report, which noted that approximately $30 billion worth of Nvidia shares were traded in the last 30 sessions. In comparison, Tesla's trading volume averaged about $22 billion in the same period. This shift is significant, given Tesla's dominant presence on Wall Street and its ongoing investments in AI, including a planned expenditure of over $500 million on Nvidia's AI hardware in 2024 alone. Musk emphasized the high stakes of AI competitiveness, acknowledging the necessity of multi-billion dollar investments.

Furthermore, Tesla's strategy includes acquiring AI hardware from Nvidia and its major competitor, AMD, showcasing the critical role Nvidia plays in powering AI advancements. The Nvidia RTX series, launched in September 2018, has become a preferred choice for generative AI enthusiasts, gamers, and content creators alike. By the third quarter of 2023, Nvidia had already achieved $18.1 billion in revenue, supported by a robust market capitalization of $1.2 trillion.

Nvidia's dominance in the AI hardware market was also recognized by Yann LeCun, the chief AI scientist at Meta's Facebook AI Research (FAIR), who acknowledged the company's significant contribution to the "AI war." LeCun's comments underline Nvidia's pivotal role in supplying the essential technology fueling advancements in AI, further solidifying its position as a key player in the tech industry's ongoing evolution.

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