Nvidia heralds the dawn of a new era

Enrique Dans
Enrique Dans
Published in
2 min readJul 4, 2024

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For the uninitiated, explaining the meteoric rise of Nvidia’s share price — potentially approaching, according to some analysts, an unprecedented $4 trillion in market capitalization — requires looking beyond the company itself. This phenomenon signifies the birth of a new technological age.

Much like Yahoo!’s dazzling ascent in the late 1990s, which saw it join the S&P 500 and create millionaires overnight out of those with the foresight to see what was coming, Nvidia’s surge reflects more than just corporate success. It embodies the market’s conviction that we’re witnessing a technology that defines a new era — one that will crown new kings and dethrone others. The efficiency gains promise to elevate the market to unprecedented heights, justifying astronomical valuations. Just as the internet reshaped the world in the ’90s, AI is poised to do the same today.

Nvidia, once a niche player known only to experts and gamers, has become a household name. It’s now synonymous with the processors powering breakthrough generative algorithms, expected to proliferate across data centers and devices worldwide. And this is before we even consider the impending robotics revolution.

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)