(BFM Bourse) – The graphics processor specialist overtook Microsoft during the session, which is a great first.
It seemed inevitable. Nvidia surpassed Microsoft on Tuesday evening in terms of market capitalization (the value of all shares), becoming the largest stock market group in the world.
Around 7:50 p.m., Nvida totaled $3.344 billion in market capitalization compared to $3.327 billion for Microsoft and $3.277 billion for Apple, according to companiesmarketcap.com.
The three companies were neck and neck in recent sessions on Wall Street to compete for the title of first listed company in the world. The race is close and it will be necessary to see at the end who will still be in the lead.
But, for now, the specialist in graphics processors (GPU) has a short lead of twenty billion dollars thanks to an increase in Tuesday’s session of 3.5% when Microsoft fell by 0 .2% and Apple by 1.3%.
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Jump in results
For more than a year now, Nvidia has seen its results jump, benefiting from the rise of generative artificial intelligence (AI). Nvidia’s graphics processors (GPUs) are, in fact, essential to provide the computing power necessary for training and developing large generative AI language models (ChatGPT, Gemini).
In its latest quarterly results, Nvidia reported a 262% jump in revenue when its profit increased sevenfold to $14.9 billion.
The company gained 169% over the whole of 2024, saw its price multiply by more than 10 since October 2022 and shows an increase over 10 years of… 27,136%.
“Investors continue to bet that the AI era that Nvidia is banking on will last much longer, and that there is very strong demand from consumers and businesses who are willing to spend their money on the new chips”, explained Naeem Aslam of Zaye Capital at the beginning of June.
“The new oil”
“For example, Elon Musk recently asked Nvidia to dedicate a specific number of chips to him. This indicates that companies such as Tesla, capable of producing smart chips for AI, are having difficulty maintaining the same level of quality “They are therefore turning to the market leader to meet their needs. Nvidia’s position is even stronger,” he added.
Nvidia’s competitors are indeed struggling to challenge its lead. “For six months the scales have gone in Nvidia’s direction. AMD had caught up with them in December and in March they took a year or even two years ahead” with Blackwell (a new chip architecture unveiled at the start of the year ), which is “essential in terms of strategic positioning”, explained Jean-Edwin Rhea, fund manager at Quadrille Capital, on BFM Bourse on May 17.
“Nvidia’s GPU chips are sort of the new gold or oil of the technology sector, as more and more companies and consumers are rapidly moving down this path, with the Fourth Industrial Revolution already well underway,” Wedbush analyst Dan Ives said Monday. By the end of 2025, the expert sees Nvidia, Microsoft and Apple all three in the running to approach $4,000 billion in market capitalization.
Julien Marion – ©2024 BFM Bourse
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