Nvidia's stunning rise offers flashbacks to the dot-com bubble
How has Nvidia's share price changed in the past decade?
Nvidia's share price has soared nearly 30,000% in the past decade, driven by its pivot to the data center market and the recent boom in artificial intelligence. The company's impressive growth has made it the fifth most valuable U.S. company, behind Apple, Microsoft, Alphabet, and Amazon.
How does William Goetzmann view the nature of stock market bubbles?
William Goetzmann, a finance professor at Yale School of Management, views stock market bubbles as events that are easier to see in hindsight and are often driven by investor anticipation of transformational change in society and the economy6. He believes that even though investors incur heavy losses during a bubble, share prices do not drop to pre-bubble levels, reflecting the underlying innovation and change brought about by the companies involved.
What sector is Nvidia a leader in?
Nvidia is a leader in the artificial intelligence (AI) sector, particularly in the development of graphics processing units (GPUs) and other accelerated computing technologies. The company's dominance is further evidenced by its GPUs and networking solutions powering over 75% of the supercomputers on the global TOP500 list, including 24 of the top 30 systems on the Green500 list.