It’s not often that the jaws of Wall Street analysts drop to the floor but late last month it happened: Nvidia, a company that makes computer chips, issued sales figures that blew the street’s collective mind. It had pulled in $13.5bn in revenue in the last quarter, which was at least $2bn more than the aforementioned financial geniuses had predicted. Suddenly, the surge in the company’s share price in May that had turned it into a trillion-dollar company made sense.
Well, up to a point, anyway. But how had a company that since 1998 – when it released the revolutionary Riva TNT video and graphics accelerator chip – had been the lodestone of gamers become worth a trillion dollars, almost overnight? The answer, oddly enough, can be found in the folk wisdom that emerged in the California gold rush of the mid-19th century, when it became clear that while few prospectors made fortunes panning for gold, the suppliers who sold them picks and shovels prospered nicely.
