NVIDIA has outperformed Intel in market capitalization in what is considered a milestone in semiconductor history, since it had never happened before.
NVIDIA shares rose 2.3% to record values of $ 404 per share on Wednesday at a market value of $ 248 billion, just above the $ 246 billion capitalization that Intel added. In this way it has become the most valuable semiconductor company in the United States.
When these events happen, without a doubt, it is historical that one company is doing very well and the other has problems. In this case there is a little of everything. NVIDIA has been one of the companies that have received the most awards from investors as it has learned expand your nmain egocio from personal computer chips.
In addition to completely dominating the dedicated graphics card segment, the green giant has expanded its business model to the business segment, workstations, servers and data centers, in addition to others such as automotive or Artificial Intelligence. It has also acquired strategic companies such as Mellanox or Cumulus.
The result is that it has not stopped growing in income, benefits and number of employees and with it in market capitalization. To understand how much, suffice it to say that NVIDIA shares they traded in 2010 at just over $ 12 when this week they exceeded $ 400 after growing almost 70% in 2020.
Opposite, Intel, a company that has dominated the semiconductor segment with firm hands the last decades, but that in the last years has lost the first world position due to income at the hands of Samsung and now it is below NVIDIA in market value.
Not Intel at its best. After the critical stumble in the smart phone revolution, it has struggled with chip supply in the face of the troublesome transition to 10-nanometer manufacturing processes. And the announcement of Apple silicon, a hardware program that will replace the Intel x86 processors used in Macs with a new architecture of unpredictable consequences in the industry.
Of course, NVIDIA still has a fraction of Intel’s revenue, and the chip giant has plenty of capacity to overcome the situation and normalize production.