Semiconductor manufacturer Nvidia became, this Tuesday (18), the most valuable company in the world, surpassing Apple and Microsoft, in yet another example of the race for generative artificial intelligence (AI), driven by markets.
The valuation of the Santa Clara (California) group reached 3.352 trillion dollars, according to an AFP calculation. At around 11:30 GMT, its shares were up 3.69%.
In any case, Nvidia has not yet broken the absolute record recorded by Apple on Monday: US$3.376 trillion.
Since ChatGPT, OpenAI’s conversational robot, was launched in November 2022, Nvidia’s share price has increased eightfold, thanks to the popularity of its powerful microchips.
“We’ve been waiting for this for some time,” said CFRA analyst Angelo Zino. “AI is transforming the landscape. In the real world and also in the markets”, he added, highlighting that the semiconductor industry is the most important on Wall Street.
On June 7, the recent ten-fold split of its shares helped further increase the company’s value by fueling demand for a more affordable security.
The group produces powerful GPU microprocessors, capable of managing a considerable amount of calculations, necessary for generative AI.
Generative AI produces texts, photos and videos, among others, based on a request made in common language.
Although many technology giants such as AMD and Intel, as well as Apple and Microsoft, invest massively in AI, Nvidia has a comfortable lead in the market for semiconductors aimed at artificial intelligence.
– Towards 4 trillion dollars? –
“Nvidia’s 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 a race towards 4 trillion dollars in market value”.
For a quarter of a century, General Electric, ExxonMobil, Microsoft and Apple followed each other on the “podium” of this competition, before Nvidia.
Nvidia, Apple and Microsoft together represent around 10% of the total value of companies listed on the stock exchange in the world.
Nvidia launched a new processor in early June, less than three months after its previous model, in an industry accustomed to release intervals of several years.
“On Wall Street, where capital is currently flowing, the ‘magnificent seven’ (as the big technology companies are known) continue to dominate trading,” summarized Konstantin Oldenburger, analyst at CMC Markets.
“Nvidia is the most value-creating company in the world right now,” said Adam Sarhan of 50 Park Investments, referring to generative AI, as well as data-intensive computer manufacturing and the cryptocurrency industry.
“This is the beginning of the AI boom,” he added.
After equipping servers around the world to run generative AI programs, next-generation microchips, led by Nvidia, will be in individual devices like smartphones, Angelo Zino predicted.
They will also be in demand in the industrial sector, such as autonomous vehicles, the analyst added. “These are massive opportunities for Nvidia,” he concluded.
2024-06-18 23:37:29