Wall Street analysts: Nvidia is cashing in on ChatGPT’s popularity

Ever since the ChatGPT chatbot hit the internet, many stock market traders have shown interest in Nvidia; Because this company has a lot of potential to benefit from the popularity of ChatGPT.

In the first three weeks of 2023, the value of Nvidia’s stock has grown by 22% to make the green team one of the best companies in the S&P 500 index. One of the factors influencing the positive performance of Nvidia is the excitement that people have for the new chatbot of OpenAI company. ChatGPT, which is based on artificial intelligence, shows an amazing ability to imitate human writing.

Currently, Nvidia is the largest GPU manufacturer in the world. These types of chips are special for complex and heavy processing that services based on artificial intelligence need. As the number of ChatGPT users increases, OpenAI will need more processing power to answer the questions of millions of users, and as a result, Nvidia’s income from the sale of the graphics chip will increase.

Rapid growth in ChatGPT usage is likely to boost Nvidia’s graphics chip sales by $3 billion to $11 billion over the next 12 months, Citigroup says. Arif Malik, the stock market analyst, says that it is very difficult to model the growth of an emerging service like ChatGPT; But Nvidia is likely to reap huge profits from the popularity of this artificial intelligence tool.

Multinational Bank of America says Nvidia is at the forefront of companies taking full advantage of the popularity of generative artificial intelligence tools. Wells Fargo Holdings says the new Nvidia chips will be made to be highly compatible with the prerequisites of AI models like ChatGPT.

Bloomberg He writes that the future of corporate stocks can never be predicted. While ChatGPT has had a positive effect on Nvidia’s stock, this artificial intelligence tool may be temporarily in the headlines and eventually forgotten.

During the Corona era, due to the increase in the value of cryptocurrencies, the sale of Nvidia graphics processors experienced a significant growth; But this growth was temporary and in the end Nvidia could not profit from the crypto market for a long time.

In the last two years, Nvidia’s processor sales have grown by more than 50%; however, the company’s revenue is expected to remain unchanged at $27 billion in fiscal year 2023.

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