In a remarkable turn of events, NVIDIA, the American technology company widely recognized for its graphic processing units (GPUs), has reached an unprecedented peak in its stock price, surpassing a staggering market capitalization of $3.57 trillion. To put this into perspective, this impressive figure equals roughly 25.6 trillion yuan, a sum that can be likened to the combined value of twelve leading brands in China's liquor industry, Kweichow Moutai. Historically, Apple has dominated the market as the unequivocal leader, consistently holding the top position for over a decade. However, as we transition into the AI era, NVIDIA has crushed the previous records, reigniting the stock market with a performance that exceeds Apple’s by an astounding $200 billion.

Let’s break down the pivotal elements of NVIDIA's exceptional rise: firstly, it has unequivocally emerged as the most powerful stock on the planet, captivating the attention of investors worldwide; secondly, there is an overwhelming demand for NVIDIA's chips, accentuated by their integral role in the burgeoning AI landscape; and thirdly, the advancement of AI large models is intrinsically linked to NVIDIA’s high-performance GPUs, underlining the company's critical position in the tech ecosystem. It is crystal clear that NVIDIA is reaping the rewards of the generative AI age. Following an unprecedented tripling in 2023, the stock has further soared by nearly 200% this year, firmly establishing the company as the most formidable player among the 'Magnificent Seven'—the biggest tech titans including Microsoft, Apple, Amazon, Google, Meta, Tesla, and of course, NVIDIA.

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The insatiable demand for chips, particularly those designed for AI applications, points towards a future where NVIDIA may very well become the first company to surpass a $4 trillion market cap. This could represent a seismic shift in the landscape of technology firms, as demands for AI applications continue to surge dramatically across global sectors.

Moreover, the symbiosis between companies developing large AI models and NVIDIA is undeniable. Whether it is established tech behemoths or emerging startups, all entities creating AI models rely heavily on NVIDIA's advanced infrastructure. It could be said, without exaggeration, that the strength of any AI model directly correlates to the number of NVIDIA GPUs utilized in its development. Notably, OpenAI, a leader in AI technology, relies significantly on NVIDIA's hardware. NVIDIA's CEO, Jensen Huang, proudly shared his experiences and emphasized his understanding of OpenAI's need for extensive computational resources, personally delivering the first DGX system to facilitate their groundbreaking work.

As we observe the increasing complexity of large AI models, the scaling of their parameters and training datasets raises serious computational requirements. Huang disclosed at NVIDIA’s GTC conference that to train a GPT model with 1.8 trillion parameters, one would need an astonishing 8,000 Hopper GPUs, operating continuously for 90 days and consuming 15 megawatts of power. The sheer scale of these numbers demonstrates the escalating nature of this AI race and emphasizes the indispensable role of NVIDIA at its core.

Generative AI is rapidly becoming a vital driver of technological growth, with NVIDIA positioned as the nucleus of this transformation. In the race to enhance AI capabilities, large tech firms are engaging in fierce competition, bolstering their resources with substantial investments. Collectively, the four dominant tech giants—Meta, Google, Microsoft, and Amazon—are pouring in an estimated $200 billion into AI research and infrastructure. As these corporations continue to acquire and hoard NVIDIA chips, they effectively fuel NVIDIA’s revenue explosion, driving its stellar performance in the stock market.

An interesting anomaly surfaces within this dynamic landscape: despite the fact that companies selling large models, including OpenAI, are struggling to find profitability, NVIDIA is thriving in this growing market. The term "selling shovels in a gold rush" aptly describes NVIDIA's strategy; the company profits handsomely by providing the essential tools required for AI development, rather than developing the models themselves. In this context, the sale of computing power stands out as the most lucrative segment of the current AI marketplace.

NVIDIA continues to remain at the forefront of this AI revolution, with its platforms having proven critical across numerous AI applications. Benefitting profoundly from the generative AI trend, NVIDIA has successfully leveraged its dominance in the GPU sector to capitalize on this lucrative market opportunity. This meteoric rise begs the question of whether the current capital market rally could display evidence of instability or potential bubbles. Yet, as demand for AI remains high, predictions from IDC suggest that the global spending on AI-related applications, infrastructure, and IT services may double, potentially reaching a staggering $632 billion by 2028.

As breakthroughs in large model technologies emerge, the future of the generative AI market appears to brim with potential, heralding a new epoch of expansion where NVIDIA is likely to continue setting the pace for innovation. With an ever-evolving landscape characterized by rapid technological advancements and insatiable demand, NVIDIA is not merely a participant but a trailblazer, shaping the future of AI and solidifying its stature in the pantheon of technological history.