The student news site of The Harker School.

Harker Aquila

The student news site of The Harker School.

Harker Aquila

The student news site of The Harker School.

Harker Aquila

Winged Post
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Dominating the digital landscape: Core innovations drive NVIDIA to new heights

NVIDIA’s cutting-edge processing units renders the company at the forefront of the technology industry
An+NVIDIA+RTX+GeForce+4070+Super+sits+on+a+wooden+table%2C+donning+two+fans%2C+12+GB+of+memory%2C+and+a+bandwidth+of+504+GB%2Fs.+NVIDIAs+recent+success+largely+lies+within+its+state-of-the-art+graphics+processing+units.%0A%0A%28Provided+by+Ivan+Chen%29
An NVIDIA RTX GeForce 4070 Super sits on a wooden table, donning two fans, 12 GB of memory, and a bandwidth of 504 GB/s. NVIDIA’s recent success largely lies within its state-of-the-art graphics processing units. (Provided by Ivan Chen)

Every year, hundreds of eager buyers flock to Best Buys or constantly refresh online shopping websites, all for one purpose – to get the latest graphics processing unit on launch day. While most casual users incorporate their GPUs into personal PCs for gaming, they serve other purposes as well. 

With artificial intelligence rapidly advancing and blockchain soaring in popularity, the demand for processing power has become higher than ever. That’s where GPUs come in, able to train language models and even mine Bitcoin. The need for powerful GPUs is also what drives the success of semiconductor company NVIDIA.

NVIDIA dominates the high-performance GPU market, so they can exert pricing pressure on their customers. Their gross profit margins have risen from just over 60% last January to nearly 80% as of the earnings call on Feb. 21, revealing the extent of their market power.

NVIDIA currently controls the GPU market due to their technological superiority and significant experience with high-peformance hardware.

NVIDIA’s fourth quarter revenue exceeded analyst predictions by over 10 percent, beating Wall Street’s already high expectations for the company. Compared to the fourth quarter of  2022, its net income increased by over 700 percent, owing largely to high demand for its high-performance computing chips. In particular, the GH100, one of the most capable AI chips for servers, significantly contributed to strong sales.

Sophomore and tech enthusiast Sahil Jain has purchased NVIDIA’s graphics cards. He feels that their unique innovations set them apart from rivals like AMD.

There’s a lack of competition since other companies are so far behind compared to them in the AI game and the GPU game. NVIDIA is really the only good seller, and that’s allowed them to get so big.

— Sahil Jain (10)

“No one else really is competing with NVIDIA because they’re just the highest up and they have the best technology,” Sahil said. “There’s a lack of competition since other companies are so far behind compared to them in the AI game and the GPU game. NVIDIA is really the only good seller, and that’s allowed them to get so big.” 

Founded in 1993 by American electrical engineers Jensen Huang, Curtis Priem and Chris Malachowsky, NVIDIA established itself as a key industry player with the release of their RIVA graphics processors and subsequently the GeForce 256, often called the world’s first GPU, a term popularized by NVIDIA. Before this point, scientists and engineers had mainly used the central processing unit (CPU) for performing tasks, designed by companies like Intel, but the GPU soon surpassed the CPU for tasks involving high volumes of instructions.

Three factors make NVIDIA GPUs especially unique. Firstly, the hardware and chips built into each processing unit are extremely fast, with their H100 chip providing 3 terabytes per second of bandwidth. Secondly, users can also customize their GPUs, tailoring the internal settings to specific applications, whether that be gaming or AI. This feature contributes to the general versatility of NVIDIA’s product, adding optimizations that can speed up processing. Finally, NVIDIA GPUs can connect to one another in a seamless manner, allowing them to run in parallel which merges their computation power. Considering how NVIDIA is developing chips specifically for AI functionalities, upper school economics teacher Dean Lizardo believes that AI will drive the decisions of most, if not all, technology companies in the future.

“As AI continues to grow, my guess is that you’re going to see a lot of industries or a lot of businesses crop up to try and fill this gap if there is any,” he said. “And so I think you will see tech find a way to make many, many use cases out of AI. It’s just a matter of time.”

In the past two decades, GPU computing has transformed into the mainstream option for processing. The soaring popularity of gaming, blockchain, and learning models has only increased the demand for NVIDIA’s processing units, snowballing their success. 

“I think that this momentum is likely to continue if you look at the revenues from data centers which heavily rely on Nvidia’s GPUs,” Harker Oeconomia president Andy Chung (11) said. “It just looks as if their revenue growth and profit growth is going to continue to increase. I’m very, very excited to see what they can do.”

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About the Contributors
Victor Gong
Victor Gong, Co-STEM Editor
Victor Gong (11) is the co-stem editor for Harker Aquila and the Winged Post, and this is his third year on staff. This year, Victor hopes to work with the journalism staff to create engaging pieces, and he also looks forward to meeting new people through interviews. Some of Victor’s hobbies include gaming, piano and programming, and he also has a passion for food.
Mihir Kotbagi
Mihir Kotbagi, Reporter
Mihir Kotbagi (10) is a reporter for Harker Aquila, and this is his second year on staff. This year, Mihir is looking to hone his photography skills and learn more about the ins and outs of journalism. In his free time, he likes to play chess, read books, and program.

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