Jensen Huang's Nvidia sure hopes the AI bubble doesn't burst ...
Jensen Huang is on top of the world. The AI frenzy briefly made his company, Nvidia, the most valuable in the world this week. Its future growth hinges on generative AI succeeding. It's been a week to remember for Jensen Huang. The 61-year-old CEO of Nvidia watched as his company briefly surpassed Microsoft to become the world's most valuable company for the first time with a $3.34 trillion valuation. 
Though Nvidia has since slipped behind Microsoft again, with Apple now breathing down its neck too, its position among two titans of American tech battling for the bragging rights at the top spot is a sign of just how far it has come.
The Rise of Nvidia
No longer is Huang's company — once on the brink of bankruptcy in the 1990s — just a purveyor of niche graphics cards designed for the gaming industry, but a near-indispensable component of the generative AI boom. Nvidia's chips, known as GPUs, have been the subject of hot demand from the likes of Meta, Google, and OpenAI as they've sought to get their hands on hardware that can help them train and build increasingly powerful AI models. Last month, the company showed just how relentless demand has been when announcing results for the first quarter of its fiscal year: it set a record quarterly revenue of $26 billion, up from 18% the previous quarter and 262% from the same quarter a year ago.
The Challenges Ahead
However, Nvidia's run faces one big risk: it depends on the generative AI boom lasting. Though tech giants, including Apple, Google, Meta, and Microsoft, now appear to have made generative AI their priority, there appears to be awareness of the technology's weaknesses. 
Earlier this month, for instance, Apple CEO Tim Cook said Apple Intelligence — the company's bold new package of AI features for iPhones, iPads, and Macs — was "not 100%," acknowledging that the technology was liable to making mistakes.
The Future of Nvidia
For now, though, the industry seems intent on moving ahead with LLM-enabled generative AI. That should keep Nvidia in the race with Microsoft and Apple to a $4 trillion valuation.
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