In 1995, Nvidia was just starting out. The company shipped its first chip, the NV1, that year. But things didn’t go as planned. Microsoft decided to make triangles the standard for PC graphics with DirectX. This move stranded Nvidia’s NV1 chip, which used a different technology. Nvidia’s cash was running dangerously low. By the mid-1990s, the company had about 30 days of money left.
Jensen Huang, Nvidia’s CEO, stepped in with a bold move. He flew to Tokyo and met with Sega. At the time, Sega was a major player in gaming. Huang asked Sega to convert a contract payment into an equity investment. Sega’s board agreed, investing $5 million in Nvidia. This money gave Nvidia roughly six more months of life.
Huang said, “If not for what Sega did for Nvidia, Nvidia would not be here today.” He also admitted, “That we had chosen exactly the wrong technology, and that we will be here today, the largest company in the world, is unimaginable.” Huang flew to thank Sega personally for their faith. “Your belief in us means a lot to me,” he said.
From Near Bankruptcy to Market Leader
Nvidia used the $5 million to develop the RIVA 128 chip. It shipped in 1997 and sold a million units in just four months. This success saved the company and set it on a new path. Nvidia went public in 1999, growing rapidly from there. Sega later sold its stake in Nvidia for about $15 million. If Sega had held on, that stake would be worth roughly $1 trillion today.
Today, Nvidia is the most valuable company on earth. But the journey has not been easy. Since its stock price peaked in May 2026, it has fallen 15%. Compared with expected earnings, Nvidia is now cheaper than the average S&P 500 company. This drop reflects changing market dynamics, especially in computing and memory prices.
Market Shifts and New Challenges
Nvidia’s value is tied closely to the price of compute power. The spot price for an hour on an Nvidia H100 GPU peaked at about $3.20 in May 2026 and then declined. Meanwhile, the spot price for DRAM, a type of memory Nvidia needs, increased tenfold over the past year. This rise in memory costs contrasts with the fall in compute prices.
Memory companies like Micron have benefited. Micron’s stock nearly tripled in value since 2023. But no major GPU or accelerator maker is making their own DRAM. This dependency drives costs for companies like Nvidia. At the same time, big tech firms such as Google, Amazon, Microsoft, and OpenAI have launched their own custom processors. These moves aim to reduce their reliance on Nvidia’s products.
Nvidia’s New Moves to Engage Fans
In July 2026, Nvidia announced a fresh promotional effort: GeForce Trading Cards. The first series has 14 designs featuring iconic moments in PC gaming. The cards include designs of the NV1 and GeForce 256. Nvidia is giving away these cards for free online and at live events. They are not selling them but using them as giveaways to connect with the community.
These trading cards are not affected by the current memory crisis. Nvidia’s latest products continue to push forward despite market challenges. The cards celebrate Nvidia’s long history, from its early struggles to now being a giant in tech.
The story of Nvidia’s survival shows how a single $5 million investment changed everything. Without Sega’s help in 1995, the company might have folded. Instead, Nvidia became a tech powerhouse. It’s a reminder that timing, trust, and a little luck can shape the future of technology.
Based on
- Jensen Huang thanks Sega for the $5m that saved Nvidia from bankruptcy in 1995 — thenextweb.com
- Nvidia is a victim of the compute marketplace it created | TechCrunch — techcrunch.com
- NVIDIA Decided Now Is The Time To Announce ‘GeForce Trading Cards’ — engadget.com
- Nvidia’s latest cards aren’t affected by the RAM crisis. | The Verge — theverge.com
- SoftBank Group’s CEO says $5 trillion a year needed globally to meet AI demand | The Independent — independent.co.uk
