For the first time, the GPU maker NVIDIA is worth more than Intel and has now outperformed the CPU giant as the largest US chip maker by NASDAQ market cap.
NVIDIA hit the milestone on Wednesday after shares rose 3.5% to $ 408.64 after a recent move up, giving NVIDIA a market cap of $ 251.31 billion. On the other hand, Intel ended the day with a 0.5% increase in stocks at $ 58.61, giving the chip giant a market cap of $ 248.16 billion. For laypersons, these numbers mean that the market now estimates that NVIDIA is worth more than Intel and that the company’s stock is more profitable for investors.
NVIDIA’s new dominance is based on significant growth in the past year. The share price rose 74% from a 2% decline for Intel in the past twelve months. NVIDIA has now secured the coveted title as the largest chip manufacturer in the United States and the third worldwide. All of this despite the fact that NVIDIA is a fabless company that does not manufacture its own chips and distributes manufacturing obligations to semiconductor foundries in China and Taiwan. Intel has its own chips from the other manufacturers in the USA, China, Ireland and Israel.
The COVID-19 pandemic and subsequent closures have supported NVIDIA’s recent growth as people turn to video games for entertainment and businesses continue to take action at a distance. In addition, the upcoming Ampere GPU has helped strengthen NVIDIA’s market share as the release of the highly anticipated GeForce RTX 3000 series consumer GPUs is on the horizon. Consumer enthusiasm for next-generation GPUs is considerable, which has undoubtedly fueled NVIDIA’s market growth. The new range will help establish NVIDIA products as GPUs of choice for the enthusiastic builder and gaming market.
Expanding beyond consumer hardware to businesses, data centers, and AI has also recently fueled NVIDIA’s impressive performance, thanks in particular to interest in NVIDIA’s powerful 7nm Amp A100 server GPUs and DGX A100- Servers with an impressive eight A100 GPUs and 15 TB PCIe SSD storage, 320 GB HBM2 storage and a duo of AMD EPYC server CPUs.
This is an impressive reparation for the company, whose previous stock price of $ 281 in 2018 was due to the boom in cryptocurrency mining. Miners flocked to buy NVIDIA GPUs for their mining capabilities, leading to widespread bottlenecks and price increases. The rapid growth was seen as lightning fast and unsustainable. Although NVIDIA suffered from the cryptocurrency bubble emptying, the company has managed to return even stronger.
While NVIDIA outperformed Intel as the largest U.S. chip maker, it lags behind in terms of sales. According to Reuters, NVIDIA revenue is expected to increase 34% to $ 14.6 billion in the current fiscal year. Intel’s revenue is expected to grow 2.5% over the same period to well over $ 73.8 billion. While NVIDIA is rated higher, Intel continues to lead the way in terms of revenue.
However, the new milestone in market capitalization signals that there is great confidence that NVIDIA’s prospects will continue to trend upwards for the foreseeable future and beyond 2020.
Read our buying guide if you are looking for a new Nvidia GPU or other components for your PC on the market.