As the world's largest market capitalization, NVIDIA thus overtakes Apple and Microsoft... in a way that is probably more lasting than last time.
In 2020, NVIDIA had already caused a sensation. Back then, the company founded in 1993 by Jensen Huang - still CEO today - had become bigger than Intel. In terms of market capitalization, it became the leading American semiconductor company. Since then, artificial intelligence has entered the game, and NVIDIA's revenues have simply exploded. The company, which used to specialize in graphics cards, has become the company to reckon with when it comes to AI, as evidenced by the boom in its share price over the past two-three years: + 850%, no less!
A progression that had already enabled NVIDIA to become the world's leading market capitalization... that was last June, but it only lasted a few days. Today, things look different. On the day of the US elections alone - Tuesday November 5 - NVIDIA shares gained 2.9%. At $139.93, the company's market capitalization stands at $3,430 billion. NVIDIA is ahead of Apple ($3,380 billion) by a narrow margin, but is still ahead of Microsoft ($3,060 billion).
On the other hand, compared with last June, NVIDIA's share price growth looks more solid: artificial intelligence continues to boom, and analysts estimate that NVIDIA's revenues will double in the current fiscal year and grow by a further 44% in the following year. For its part, Apple is less reassuring: the Chinese market, its first point of sale, is turning around, and consumers prefer the local firm, Huawei. In the third quarter of 2024, Apple even fell off the podium. NVIDIA, a number one that should last.
