From Gaming Chips to AI Patents — Nvidia’s Path to Trillion-Dollar Market Value
Nvidia is experiencing a surge in demand for its products due to the booming field of AI, propelling the company toward a market value of $1 trillion USD, placing it in the prestigious league alongside tech giants like Apple, Microsoft, and Alphabet. The company’s stock has soared by 160% this year, contributing to its position as the fifth most valuable U.S. company.
Nvidia’s pivotal role in the AI boom stems from its production of graphics processing units (GPUs), which are instrumental in running large computers that process data and power generative AI. Analysts estimate that Nvidia currently manufactures approximately 80% of the GPUs in the market. The company’s GPUs are specifically designed to efficiently handle the complex mathematical computations required for AI, setting them apart from more general-purpose central processing units.
In this article, we will delve deeper into Nvidia’s patents and innovations to see if we can find any insights into the company’s strategies and its contributions to the advancement of AI technology.
Reading Patent Portfolios With AI-powered Patent Summary
Nvidia’s Patent Portfolio
Looking at the global coverage of Nvidia’s patent portfolio with Due Diligence, we can see that their 13,439 patent assets are found in 18 regions, mainly in the U.S., China, Germany, and Taiwan.
Source: Patentcloud Due Diligence
Nearly half of the patents are active (48.8%), and 29.5% are pending applications. We can also see that 58% of the active and pending patents are U.S. applications.
See how the magic works with the AI Patent Summary Feature
The Patent Summary feature enhances the readability of the original patent list by categorizing it into specific groups and providing corresponding descriptions of the inventions or technologies. Here we can easily see the classification of Nvidia’s patent portfolio and the technical descriptions of each category.
The feature can generate results from patents in multiple jurisdictions, allowing it to read and analyze patents written in different languages.
To view the Value Rankings, we analyzed Nvidia’s patents, specifically in the field of “Electronic Digital Data Processing” (IPC G06B), which is the category with the most number of patents held by the company.
The Patent Value and Quality Rankings are generated by deep learning. See the white paper to see how we develop and validate the Patent Value and Quality Rankings.
We can see that around 10% of Nvidia’s patents in Electronic Digital Data Processing are ranked A or above, much higher than the prominent patent owners in the technical field.
Delving Deeper in Understanding the Technology of Nvidia’s AAA Patents
We used our Patent Summary feature to examine Nvidia’s IPC G06B patents with an AAA ranking and found that 45.2% of the patents are related to “parallel processing.”
Want to check it out? Try the Patent Summary feature in our free interactive Due Diligence demo report for a limited time only!