NVIDIA and AMD are experiencing an unprecedented surge in their shares, propelled by the escalating demand for artificial intelligence (AI) solutions. As businesses worldwide eagerly seek AI-building chips to bolster their digital transformations, both companies have witnessed an extraordinary uptick in their market presence. The intensified global demand for AI has driven NVIDIA and AMD to expand their chip offerings, leading to a remarkable ascent in their shares. This surge is indicative of the fierce competition among industry leaders vying for powerful AI-building chips in response to the escalating digital needs of businesses. The soaring share prices underscore the heightened investor interest, with a growing number of enterprises actively pursuing graphics processors to harness and deploy AI capabilities.

NVIDIA, at the forefront of high-end chips, unveiled its latest chip, the H200, at the close of 2023, specifically designed for training AI models. Simultaneously, AMD has ramped up its investments in AI technology, focusing on the enterprise advantages it can deliver. The momentum of AI's stock market success has been building over the past 18 months, fueled in part by the launch of OpenAI's ChatGPT. Businesses now face the challenge of translating this interest into the development of more sophisticated technology. Microsoft exemplifies this transformation, surpassing Apple as the world's most valuable company, primarily due to its achievements in generative AI (Gen AI) technology, alongside the success of Copilot. NVIDIA's commitment to AI projects, exemplified by the H200, has paid off by supercharging Gen AI and high-performance computing (HPC) workloads. CEO Jensen Huang has positioned AI as a 'reinvention of computing' in 2023, steering the company through high-profile collaborations with AWS and Microsoft.

Under Lisa Su's leadership, AMD has experienced financial resurgence, with a substantial increase in stock price and market share. Su's strategic focus on innovation, particularly in high-performance and energy-efficient processors, has solidified AMD's position as a leader in the semiconductor industry. With AI driving accelerated sales, AMD is well-positioned in a market valued at US$53.5 billion in 2023, projected to grow to US$67 billion in 2024. In a significant development, tech giant Meta recently announced plans to acquire billions of dollars worth of GPUs in 2024, including from NVIDIA, as part of its commitment to developing open-source AI models. The collaboration between Meta, OpenAI, and Microsoft in adopting AMD's Instinct MI300X AI computer chips further emphasizes the companies' commitment to expanding their global presence in 2024, as AI becomes an increasingly vital priority for businesses.