- An overview of Nvidia's and TSMC's place in the AI-driven global market, backed by data on market cap and stock growth.
- Discussion on how strategic collaborations have solidified Nvidia's and TSMC's positions as market leaders.
- Examination of how Nvidia and TSMC are adapting to shifting environmental policies.
- Forecast of sustainable growth for Nvidia and TSMC against the backdrop of AI innovation.
In a dramatically evolving financial landscape, artificial intelligence (AI) has emerged as a dominating technological force. From its embryonic stages conceptualised by John McCarthy in 1956, AI applications have redefined the global market, disrupted traditional industries and led to the creation of innovative ones. Particularly under the Wall Street's microscope are powerhouse tech companies like Nvidia and Taiwan Semiconductor Manufacturing Co. Ltd (TSMC)— firms that have harnessed the capabilities of AI, adopted a Modern Portfolio Theory inspired approach to financial management and in doing so, highlighted the benefits of investment diversification.
Take Nvidia's journey, for example. The tech giant, having made its mark early in the graphic processing unit (GPU) market, currently stands among the world's leading players. This archetype of the first-mover advantage theory in economics indeed worked in Nvidia's favor, leading to a substantial market capitalisation. An intriguing chapter of Nvidia's story is the 2019 scenario with Softbank. The latter, sticking to their risk management principles, divested their complete holding in Nvidia—a decision that rather misfired when Nvidia's demand soared due to the pandemic-spurred shift to remote work and an upswing in gaming, fueling the company's growth trajectory.
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