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The Evolution of Virtual Reality

Published

7 years ago

on

For much of modern history, people have longed to find ways to temporarily escape the mundane and sometimes harsh realities of everyday life.

Following the invention of the Gutenberg press, readers could use their imaginations to “get lost” in fiction books to take a break from all things ordinary. More recently, it has been inventions such as television, movies, and video games that have gotten us even closer to achieving true escapism.

And while that progress is impressive, it is likely that today’s virtual reality technology may be the biggest leap forward yet. The virtual reality experiences coming out right now are so real and immersive, that the “realness” has actually become a potential psychological pitfall for developers to overcome.

As the technology continues to grow, virtual reality will allow us the ultimate escape. We will be able to completely immerse in new experiences such as journeying to new planets, solving mysteries, or flying alongside our favorite superheroes to prevent the next global catastrophe.

The Evolution of Virtual Reality

Although it was the most recent developments in technology that have tipped virtual reality towards mainstream use, the concept of virtual reality itself has been a long time coming.

Today’s infographic from Communications@Syracuse shows the evolution of virtual reality, and how new ideas and products over time have helped to put the technology on its current course.

The Evolution of Virtual Reality

Interestingly, the seeds for the evolution of virtual reality were actually sown as early as the 1930s and 1940s.

The first important precursor was the Link Trainer, which was used as a flight simulator for the U.S. military. This device, which would be ultimately used to train over 500,000 U.S. pilots, was entirely electromechanical in nature. By using a series of pumps, valves, and bellows to respond to the pilot’s controls, it produced an accurate reading on flight instruments.

Around the same time the Link Trainer became widespread in use, Sawyer’s View-Master was introduced at the New York World’s Fair in 1939-1940. Today it is still a popular children’s toy, having sold over 100 million viewers worldwide since then. The View-Master uses reels of stereoscopic film to provide the illusion of 3d images through the plastic binocular set.

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Technology

Nvidia Joins the Trillion Dollar Club

America’s biggest chipmaker Nvidia has joined the trillion dollar club as advancements in AI move at lightning speed.

Published

5 days ago

on

May 30, 2023

By

Nvidia Joins the Trillion Dollar Club

Chipmaker Nvidia is now worth nearly as much as Amazon.

America’s largest semiconductor company has vaulted past the $1 trillion market capitalization mark, a milestone reached by just a handful of companies including Apple, Amazon, and Microsoft. While many of these are household names, Nvidia has only recently gained widespread attention amid the AI boom.

The above graphic compares Nvidia to the seven companies that have reached the trillion dollar club.

Riding the AI Wave

Nvidia’s market cap has more than doubled in 2023 to over $1 trillion.

The company designs semiconductor chips that are made of silicon slices that contain specific patterns. Just like you flip an electrical switch by turning on a light at home, these chips have billions of switches that process complex information simultaneously.

Today, they are integral to many AI functions—from OpenAI’s ChatGPT to image generation. Here’s how Nvidia stands up against companies that have achieved the trillion dollar milestone:

Joined ClubMarket Cap
in trillions		Peak Market Cap
in trillions
AppleAug 2018$2.78$2.94
MicrosoftApr 2019$2.47$2.58
AramcoDec 2019$2.06$2.45
AlphabetJul 2020$1.58$1.98
AmazonApr 2020$1.25$1.88
MetaJun 2021$0.68$1.07
TeslaOct 2021$0.63$1.23
NvidiaMay 2023$1.02$1.02

Note: Market caps as of May 30th, 2023

After posting record sales, the company added $184 billion to its market value in one day. Only two other companies have exceeded this number: Amazon ($191 billion), and Apple ($191 billion).

As Nvidia’s market cap reaches new heights, many are wondering if its explosive growth will continue—or if the AI craze is merely temporary. There are cases to be made on both sides.

Bull Case Scenario

Big tech companies are racing to develop capabilities like OpenAI. These types of generative AI require vastly higher amounts of computing power, especially as they become more sophisticated.

Many tech giants, including Google and Microsoft use Nvidia chips to power their AI operations. Consider how Google plans to use generative AI in six products in the future. Each of these have over 2 billion users.

Nvidia has also launched new products days since its stratospheric rise, spanning from robotics to gaming. Leading the way is the A100, a powerful graphics processing unit (GPU) well-suited for machine learning. Additionally, it announced a new supercomputer platform that Google, Microsoft, and Meta are first in line for. Overall, 65,000 companies globally use the company’s chips for a wide range of functions.

Bear Case Scenario

While extreme investor optimism has launched Nvidia to record highs, how do some of its fundamental valuations stack up to other giants?

As the table below shows, its price to earnings (P/E) ratio is second-only to Amazon, at 214.4. This shows how much a shareholder pays compared to the earnings of a company. Here, the company’s share price is over 200 times its earnings on a per share basis.

P/E RatioNet Profit Margin (Annual)
Apple30.225.3%
Microsoft36.136.7%
Aramco13.526.4%
Alphabet28.221.2%
Amazon294.2-0.5%
Meta33.919.9%
Tesla59.015.4%
Nvidia214.416.19%

Consider how this looks for revenue of Nvidia compared to other big tech names:

For some, Nvidia’s valuation seems unrealistic even in spite of the prospects of AI. While Nvidia has $11 billion in projected revenue for the next quarter, it would still mean significantly higher multiples than its big tech peers. This suggests the company is overvalued at current prices.

Nvidia’s Growth: Will it Last?

This is not the first time Nvidia’s market cap has rocketed up.

During the crypto rally of 2021, its share price skyrocketed over 100% as demand for its GPUs increased. These specialist chips help mine cryptocurrency, and a jump in demand led to a shortage of chips at the time.

As cryptocurrencies lost their lustre, Nvidia’s share price sank over 46% the following year.

By comparison, AI advancements could have more transformative power. Big tech is rushing to partner with Nvidia, potentially reshaping everything from search to advertising.

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