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The semiconductor giant Nvidia Corp. has experienced a dizzying rise in its market capitalization, surpassing its mega-cap technology competitors.
According to Bloomberg, this Tuesday, Nvidia shares soared as much as 3.4%, reaching a market value of approximately $3.3 trillion. This achievement catapulted Nvidia above Microsoft Corp. and Apple Inc., who have been vying for the top position all month.
Anyway, Nvidia has not yet reached the absolute record that Apple reached this Monday, with 3,376 billion dollars.
According to the AFP agency, since ChatGPT, OpenAI’s conversational robot, was launched in November 2022, Nvidia’s price increased eightfold, thanks to the popularity of its powerful microchips.
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This is not the first time that Nvidia has positioned itself as a leader in market capitalization. Earlier this month, the company surpassed Apple in market value for the first time since 2002. Last week, Apple also managed to overtake Microsoft and briefly took the top spot.
“The ranking is another reminder that AI is the main goal of many investors. Nvidia is seen as the biggest beneficiary of this technology,” Bloomberg detailed.
This milestone is a reminder that artificial intelligence (AI) remains the top goal for many investors. Nvidia, in particular, is considered the biggest beneficiary of this technology.
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Its focus on AI solutions, such as graphics processing units (GPUs) optimized for deep learning taskshas fueled its growth and placed it at the top of the business world.
For experts, the wave of artificial intelligence continues to expand, and Nvidia is in a privileged position to capitalize on it. As demand for AI solutions continues to grow, the company is well positioned to lead the way towards an increasingly automated and intelligent future.
“We have been waiting for this for some time,” said Angelo Zino, an analyst at Cfra, adding: “AI is disrupting the landscape. In the real world, and also in the markets”, while he highlighted that The semiconductor industry is the most important on Wall Street.
Although many technology giants such as AMD or Intel, as well as Apple or Microsoft, invest massively in AI, Nvidia has a comfortable lead in the semiconductor market for artificial intelligence.
Towards $4 trillion?
“Nvidia GPU microchips are the new gold or the new oil of the technology sector”, consider analysts at Wedbush Securities. For them, Nvidia, Apple and Microsoft are “in the race towards $4 trillion in stock market value.”
For a quarter of a century, General Electric, ExxonMobil, Microsoft and Apple have followed one another on the “podium” of that competition, before Nvidia. Now, Nvidia, Apple and Microsoft together account for around 10% of the total value of listed companies in the world.
It must be remembered that Nvidia presented a new processor at the beginning of June, less than three months after its previous model, in a sector accustomed to interspersing its launches over several years.
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“On Wall Street, where capital is currently flowing, the ‘magnificent seven’ (as the big technology companies are known) continue to dominate the exchanges,” summarized Konstantin Oldenburger, analyst at CMC Markets.
For Adam Sarhan, of 50 Park Investments, “Nvidia is the company that creates the most value in the world at this moment”, in reference to generative AI, but also to the manufacturing of computers or the cryptocurrency industry, which is very data-intensive. “This is the beginning of the AI boom,” he added.
After equipping servers around the world to run generative AI programs, the latest generation microchips, with Nvidia leading the way, will be on individual devices such as smartphones, anticipated Angelo Zino. They will also be requested in the industrial sector, such as autonomous vehicles, the analyst added. “These are massive opportunities for Nvidia”.
*With information from AFP.
