Just 18 months ago, the Californian chipmaker Nvidia — which started life in 1993 as a specialist provider of 3D graphics for computer games — operated in relative obscurity. However, a surge of interest in artificial intelligence has changed all that. As investors fell over themselves to find the companies they thought would make the most money from generative AI, Nvidia’s share price took off.
Last year, it was the best-performing stock in the S&P 500, rising 239 per cent, while in February this year it recorded the largest one-day gain in Wall Street history after its quarterly report beat expectations.
The fact that Nvidia is one of the dominant suppliers of AI hardware and software suggests the share price jump is no fluke. But there are some observers who believe these impressive stock market gains are not only linked to what Nvidia makes but also to the way it treats its staff.