(Bloomberg) -- Nvidia Corp.’s transformation into an artificial intelligence powerhouse — and Wall Street darling with a nearly $1 trillion valuation — has been years in the works.
After getting its start making graphics cards for gamers, the company shifted into chips for data centers, territory that has been dominated by Intel Corp. and Advanced Micro Devices Inc. By showing that Nvidia’s processors can deftly handle massive AI workloads, the company has made quick inroads.
It’s now poised to overtake Intel in data-center sales — an unthinkable feat just a few years ago.
AI demand also has turned Nvidia’s data-center business from a sideshow into its main attraction. That’s helped the company weather a slowdown in its gaming business, which has suffered from a broader slump in computer sales.
The growth has turned Nvidia into the first chipmaker to cross the $1 trillion mark in valuation. It first eclipsed Intel in market capitalization in 2020, and now the two companies aren’t even close. Only a handful of Big Tech household names rank above Nvidia.
The question now is how quickly Nvidia’s rivals can catch up. AMD is working with Microsoft Corp. to turbocharge its AI chip business. And Intel is looking to regain the manufacturing technology leadership it held for decades in the semiconductor industry.
But with Nvidia continuing to roll out new products and services, its peers have a ways to go.
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