The semiconductor designer Nvidia became the largest market capitalization in the world this Tuesday, surpassing Apple and Microsoft, a symbol of the fever for generative artificial intelligence (AI) that drives the markets.
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The valuation of the Santa Clara (California) group reached 3.352 billion dollars, according to an AFP calculation.
Towards 18:30 GMT its shares rose 3.69 percent.
Anyway, Nvidia has yet to reach the absolute record that Apple reached on Monday, at $3.376 billion.
Since it was launched ChatGPT, OpenAI’s conversational robot In November 2022, Nvidia’s price increased eightfold, thanks to the popularity of its powerful microchips.
ChatGPT, OpenAI’s conversational robot.
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“We’ve been expecting this for some time,” said CFRA analyst Angelo Zino. “AI is disrupting the landscape. In the real world, and also in the markets“he added, while highlighting that the semiconductor industry is the most important on Wall Street.
The recent split of its shares by 10, on June 7, contributed to further increasing the company’s value by fueling demand for a more accessible title.
The group produces powerful graphics cards (GPU), semiconductors capable of managing a considerable amount of calculations, necessary for generative AI.
Generative AI produces texts, photos and videos, among others, from a request formulated in everyday language.
Although many technology giants such as AMD or Intel, as well as Apple or Microsoft, invest massively in AI, Nvidia has a comfortable lead in the semiconductor market for artificial intelligence.
NVIDIA CEO Jensen Huang
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Towards 4 billion?
“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 the race towards $4 trillion in stock market value.”
For a quarter of a century, General Electric, ExxonMobil, Microsoft and Apple have succeeded one another on the “podium” of that competition, before Nvidia.
Nvidia, Apple and Microsoft together account for around 10% of the total value of listed companies in the world.
Nvidia presented a new processor at the beginning of June, less than three months after its previous model, in a sector accustomed to interspersing its launches over several years.
“On Wall Street, where capital is currently flowing, the ‘magnificent seven’ (as the big technology companies are known) continue to dominate the exchanges,” summarized Konstantin Oldenburger, analyst at CMC Markets.
Nvidia is the company that creates the most value in the world right now.
“Nvidia is the company that creates the most value in the world right now,” said Adam Sarhan, of 50 Park Investments, alluding to generative AI, but also to the manufacturing of computers or the cryptocurrency industry, which is very demanding in data.
“This is the beginning of the AI ​​boom,” he added.
After equipping servers around the world to run generative AI programs, next-generation microchipswith Nvidia leading the way, will be in individual devices such as smartphones, Angelo Zino anticipated.
They will also be requested in the industrial sector, such as autonomous vehicles, the analyst added. “These are massive opportunities for Nvidia.”
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