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How Santa Clara chipmaker Nvidia became one of the world's most valuable companies in the AI boom

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How Santa Clara chipmaker Nvidia became one of the world's most valuable companies in the AI boom

For more than a decade, with only a few interruptions, Apple held the title of the world’s most valuable company, becoming the first to top $3 trillion in market capitalization — mostly due to the iPhone, a device millions of investors use daily.

Recently, Apple was overtaken by Microsoft, and this week there was briefly a new king of Wall Street — once again a Bay Area company: Nvidia, which makes semiconductors in high demand for artificial intelligence applications. It’s the hottest stock around and the company has a market cap that tops $3.2 trillion.

Here’s what to know about the world’s leading AI chipmaker:

What role is Nvidia playing in the artificial intelligence industry?

Artificial intelligence programs are complex computer applications that rely on massive databases and processing power to produce their results. OpenAI’s ChatGPT-4, a much-talked about program released last year that generates text, is estimated to have 1.7 trillion “parameters,” or variables, about 10 times more than its 2020 predecessor — and the complexity is only growing. Nvidia makes a chip called the H100 accelerator that is able to process that data and is in high demand. This month it announced it is making an even more advanced chip.

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Has Nvidia always made chips for artificial intelligence?

Nvidia went public in 1999 and for years was seen largely as a manufacturer of premium graphics cards sought after by gamers for their clarity in rendering high-speed visuals. The cards don’t come cheap, with Nvidia’s top-of-the-line GeForce RTX 4090 currently retailing around $1,700. But given its niche position in the industry, Nvidia stock lingered for years under $1 per share, adjusted for stock splits.

When did its fortunes improve?

During last decade’s crypto boom, its powerful chips were sought by “miners” of bitcoin, which employ computer banks to solve puzzles that reward them with cryptocurrency. The demand was so strong Nvidia launched a new chip specifically for miners as its stock surged from 87 cents in May 2016 to more than $7 in October 2018 — before the crypto bubble burst and shares fell under $4.

The fall prompted a shareholder lawsuit over accusations that the company hid how much revenue it was making on crypto-related sales. That suit is currently before the Supreme Court.

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What happened after the collapse of the crypto boom?

Nvidia enjoyed a resurgence during the pandemic as Americans confined at home turned to their gaming computers. Its annual revenue shot up more than 50% to $16.7 billion in the fiscal year ending Jan. 31, 2021. The company’s cloud computing platform also grew as customers relied on the networks to handle the shift to remote work. Nvidia’s stock topped $19 a share in August 2022 before coming back to earth and trading below $12 later in the year as the pandemic waned.

When did the current stock surge begin?

Nvidia shares have been on a steady upswing since 2021 as the hype over artificial intelligence has become a frenzy — supported by the company’s strong sales growth. Nvidia’s revenue hit $60.9 billion in its fiscal year ending Jan. 31, 2024. Shares started the year at $48.17 and closed Tuesday at $135.58, a 180% gain that gave it a market value of about $3.34 trillion, briefly surpassing Microsoft.

Can the company keep it up?

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Nvidia reported record fiscal fourth quarter revenue of $26 billion, up 262% from a year earlier, as demand for its chips grew beyond cloud-service providers to include consumer internet companies, governments and automotive and healthcare customers. The company’s revenue is projected to grow 44% annually in the near future, according to a FactSet survey of 60 analysts.

What other companies are benefiting from AI?

Microsoft has seen its own stock gain about 20% this year. That’s largely due to its partnership with OpenAI. Microsoft’s Bing browser now offers a chat function powered by Chat GPT-4 that can write emails and perform other tasks. Apple stock also hit a record high this week after it announced its Apple Intelligence platform, which will be integrated into its iPhone, iPad, and Mac lineups.

Is a lot of this just hype like crypto?

Many on Wall Street believe that artificial intelligence is in a different league than blockchain and cryptocurrency, with far more concrete applications. Advanced Micro Devices and Intel Corp. are rolling out new chips to counter Nvidia’s market dominance.

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However, there are dissenting voices. Rob Arnott, founder of Newport Beach investment company Research Affiliates, has called Nvidia a great company but warned even last year that its stock performance is unsustainable.

“Overconfident markets paradoxically transform brilliant future business prospects into even more brilliant current stock price levels,” Arnott wrote in a research note. “Nvidia is today’s exemplar of that genre: a great company priced beyond perfection.”

Bloomberg News contributed to this report.

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Disneyland Resort President Thomas Mazloum named parks chief

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Disneyland Resort President Thomas Mazloum named parks chief

Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.

Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani resort and spa in Hawaii.

Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.

Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.

“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”

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Mazloum had been about a year into his tenure at Disneyland. Before that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.

In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.

Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.

The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.

In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said probably will factor into its earnings for its fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.

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Times staff writer Todd Martens contributed to this report.

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What soaring gas prices mean for California’s EV market

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What soaring gas prices mean for California’s EV market

It has been a bumpy road for the electric vehicle market as declining federal support and plateauing public interest have eaten away at sales.

But EV sellers could soon receive a boost from an unexpected source: The war in Iran is pushing up gas prices.

As Americans look to save money at the pump, more will consider switching to an electric or hybrid vehicle. Average gas prices in the U.S. have risen nearly 17% since Feb. 28 to reach $3.48 per gallon. In California, the average is $5.20 per gallon.

Electric vehicles are pricier than gasoline-powered cars and charging them isn’t cheap with current electricity prices, but sky-high gas prices can tip the scales for consumers deciding which kind of vehicle to buy next.

“We probably will see an uptick in EV adoption and particularly hybrid adoption” if gas prices stay high, said Sam Abuelsamid, an auto analyst at Telemetry Agency. “The last time we had oil prices top $100 per barrel was early 2022 and that’s when we saw EV sales really start to pick up in the U.S.”

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In a 2022 AAA survey, 77% of respondents said saving money on gas was their primary motivator for purchasing an electric vehicle. That year, 25% of survey respondents said they were likely or very likely to purchase an EV.

As oil prices cooled, the number fell to16% in 2025.

In California, annual sales of new light-duty zero-emission vehicles jumped 43% in 2022, according to the state’s Energy Commission. The market share of zero-emission vehicles among all light-duty vehicles sold rose from 12% in 2021 to 19% in 2022.

“Prior to 2022, we didn’t really have EVs available when we had oil price shocks,” Abuelsamid said. “But every time we did, it coincided with a move toward more fuel-efficient vehicles.”

Dealers are anticipating a windfall.

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Brian Maas, president of the California New Car Dealers Assn., predicted enthusiasm for EVs will rebound across California if oil prices don’t come down.

“If prior gasoline price spikes are any indication, you tend to see interest in more fuel-efficient vehicles,” he said.

Rising gas prices could be a lifeline for EV makers at a time when federal support for green cars has been declining.

Under President Trump, a federal $7,500 tax incentive for new electric vehicles was eliminated in September, along with a $4,000 incentive for used electric vehicles.

In California, the zero-emission vehicle share of the total new-vehicle market was 22% through the first 10 months of 2025, then dropped sharply to 12% in the last two months of the year, according to the California Auto Outlook.

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Meanwhile Tesla, the most popular EV brand in the country, has grappled with an implosion of its reputation with some consumers after its chief executive, Elon Musk, became one of Trump’s most vocal supporters and helped run the controversial Department of Government Efficiency.

Over the last several months, Ford, General Motors and Stellantis have pared back EV ambitions.

Other automakers, including Nissan, announced plans to stop producing their more affordable electric models.

The Trump administration has moved to roll back federal fuel economy standards and revoked California’s permission to implement a ban on new gas-powered car sales by 2035.

David Reichmuth, a researcher with the Clean Transportation program in the Union of Concerned Scientists, said the shift in production plans will affect EV availability, even if demand surges.

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That could keep people from switching to cleaner vehicles regardless of higher gas prices.

“This is a transition that we need to make for both public health and to try to slow the damage from global warming, whether or not the price of gasoline is $3 or $5 or $6 a gallon,” he said.

According to Cox Automotive, new EV sales nationally were down 41% in November from a year earlier. Used EV sales were down 14% year over year that month.

To be sure, oil prices can fluctuate wildly in times of uncertainty. It will take time for consumers to decide on new purchases.

Brian Kim, who manages used car sales at Ford of Downtown LA, said he has yet to see a jump in the number of people interested in EVs, hybrids or more fuel-efficient gas-powered engines.

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Still, if the price at the pump stays stuck above its current level, it could happen soon.

“Once the gas prices hit six [dollars per gallon] or more and people feel it in their pocket, maybe things will start to change,” he said.

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Nearly 60 gigawatts of U.S. clean power stalled, trade group finds

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Nearly 60 gigawatts of U.S. clean power stalled, trade group finds

A total of 59 gigawatts of U.S. clean energy projects are facing delays at a time when demand for power from AI data centers is surging, according to a trade group study.

Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers, the American Clean Power Assn. said in a quarterly market report.

The backlog is happening despite the growing need for power on grids that are being taxed by energy-hungry data centers and increased manufacturing. The Trump administration has implemented a slew of policies to slow the build-out of solar and wind projects, including delaying approvals on federal lands.

The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors, enough to power more than 44 million homes simultaneously.

“Current policy instability is beginning to impact investor confidence and negatively impact project timelines at a time when demand is surging,” American Clean Power Chief Policy Officer JC Sandberg said in a statement.

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Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025, accounting for more than 90% of all new power capacity in the U.S., the report found. Clean power purchase agreements declined 36% in 2025 compared with 2024, signaling that the build-out of clean power in the U.S. could be lower in the 2028 to 2030 time period, according to the report.

Chediak writes for Bloomberg.

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