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Financial markets last year were defined by the rise of Artificial Intelligence , with some analysts describing AI as the “saviour” of the S&P 500. Among those AI stocks, Nvidia was a clear standout, climbing more than 230% in 2023 and becoming the eighth ever company to hit US$1 trillion in valuation. However, with such an explosive rise to stardom, some questions have naturally arisen:. How did Nvidia become so important to AI?What are the risks for Nvidia looking forward?GPUs are microchips designed to output graphics onto computer screens; and Nvidia, with its origins in the video games industry, has long been the industry leader in that market, maintaining almost 80% market share in 2023.But Nvidia’s GPUs didn’t matter in the AI rally because of their graphics rendering capabilities, instead it was their prowess in data processing that was the focus, a feat largely attributed to Nvidia’s proprietary software CUDA .The market believes revenue growth will overwhelmingly come from d