Nvidia has no rival. After several sessions trying, this Tuesday, he finally achieved it and turns the tables on Wall Street. The manufacturer of microchips and graphics cards, which until a few years ago was known only in the universe gamer, has dethroned Microsoft as the most valuable company. With a rise of more than 173% so far this year, the technology company and maximum exponent of artificial intelligence reaches 3.33 billion dollars, above the 3.32 billion worth of the company that it has piloted since 2014. Satya Nadella. As an example, so far in 2024, Microsoft has barely grown 18.5%.
Ndivia’s first quarter results presentation was the latest catalyst. A 262% increase in revenue, combined with a 628% increase in profit and a doubling of its shares —split in the jargon—have allowed the company to shatter all records. Its titles, which exceeded $1,000 before the split, have multiplied by more than nine since 2022, an increase that has been accompanied by the emergence of artificial intelligence. In this process, co-founder and CEO Jensen Huang has raised his wealth to $117 billion, earnings that make him the eleventh richest person in the world, according to Forbes.
Nvidia enjoys an enviable position in the new business. About 80% of the market for AI chips used in data centers corresponds to the company. The listed company, which currently sets the course of the markets, was founded in 1991. In its first decades of history they were dedicated to the sale of chips for 3D games. In addition to having the largest share in the AI chip universe, it has also tried its hand in cryptocurrency mining chips and cloud gaming subscriptions.
Nvidia’s rise has been so vertical that it has not yet become part of the Dow Jones, the index that historically includes the 30 most valuable company stocks. Analysts believe that the split of 1 share into 10 titles is an opportunity to land on the selective, a price-weighted index. That is, companies with higher share prices have greater influence, rather than market capitalization.
Although continuing to beat records seems increasingly difficult, analysts have taken advantage of the first quarter accounts to revise their valuations upwards. 88.9% of the firms that follow value advise buying shares of the company, compared to 9.7% that recommend keeping in the portfolio and 1.4% that believe that the best thing is to fold the candles and cash in. While waiting for the data to be updated, the consensus of the analysts consulted by Bloomberg sets the target price at 130.1 dollars, lower than the 135.3 greenbacks at which it is currently trading. The most positive analysis firm is Rosenblatt Securities, which sees the company’s shares at $200. That is, they give it an additional potential of 47.7%.
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