Nvidia has decided to beat stock market milestones two by two. The chip manufacturing firm has broken the barrier of 3 trillion market capitalization, beating Apple and becoming the second most valuable company in the world, only behind Microsoft. A spectacular comeback that has led it to almost triple its value in just 6 months.
The firm has not surpassed the apple giant since 2002, five years before the launch of the iPhone, when the valuation of both companies did not exceed 10,000 million dollars, a minuscule figure compared to what they are trading today. Today, the AI revolution is what drives Nvidia, which has skyrocketed its chip sales to stratospheric levels and does not expect the pace of sales to slow down in the short term.
The runaway growth has mainly come with its quarterly results. The firm headed by Jen-Hsun Huang obtained in the first quarter of the fiscal year $26 billion in revenue, up 260% year-over-year and profits of 14,881 million dollars, that is, an increase of 21% from the previous quarter and 628% year-on-year. As if that were not enough, it increased revenue expectations for the second quarter to $28 billion. And it announced a ‘split’ of ten new shares for each old share for this month, which will make them more affordable, in addition to increasing the dividend from 4 to 10 cents per share.
So far this year, the processor firm registers a practically vertical rise by gaining 147% on Wall Street. In the last year, its rebound is 226%. For its part, Apple is experiencing a year of ups and downs on the stock market, which leaves it with hardly any changes since the year began, with a rebound of 1.7%. And, if you look further back, at the last 12 months, it gains 10.15%.
Apple is frozen
Because, while Nvidia reaps those spectacular results, Apple is stuck at the top. Its sales figures are still something most of its rivals would kill to achieve, but does not achieve a revolutionary product that compensates for the cooling in iPhone salesin a market, that of smartphones, already saturated throughout the world.
The chip company is growing and the iPhone company is not. Apple triples Nvidia’s sales, but the latter billed 262% more in the first quarter compared to Cupertino’s sales drop of 4.3% in the same period. “Apple’s near-term growth could fall to the low single digits,” Bloomberg Intelligence analysts say of the company. Meanwhile, the growth prospects for chips seem to find no limits.
Nvidia has a great asset and that is that it is going to sell everything it produces. “Demand for its chips is going to be higher than supply,” JP Morgan notes in a report. Orders for the H100 processor, the brand’s most powerful, will continue to increase. In addition, the house’s new chip, the H200, is already in the hands of OpenAI, the owner of ChatGPT, and is expected to be commercialized this year, which is great news for the company itself and for the industry.
