Nvidia on top of the world. The Santa Clara (California) group now has a capitalization of 3,431 billion dollars, ahead of Apple's 3,377 billion. The American semiconductor giant had already closed in the lead in mid-June, before losing its rank. He briefly stepped over Apple again at the end of October, for only a few minutes.
Even though Nvidia is now the world's largest capitalization, its stock market value has already been higher than at Tuesday's close. At the end of October, the Californian company had reached $3.542 billion.
The record remains the property of Apple, whose capitalization climbed in mid-October to $3.610 billion. Since the beginning of October 2022, just before the arrival of ChatGPT, the value of Nvidia shares has multiplied by more than eleven. The company is considered the most advanced manufacturer of semiconductors in the graphics card market, these chips with increased computing capabilities compared to a conventional microprocessor. Called GPU (graphics processing unit), they are considered essential to the development of so-called generative AI.
Nvidia will enter the flagship Dow Jones index on Friday
Furthermore, Nvidia will enter the flagship Dow Jones index on Friday, in which it will replace its competitor Intel. The permutation will take place before the opening of the November 8 session on Wall Street, according to a press release. A new sign of the emergence of the company which follows a trajectory almost opposite to that of Intel, a historic figure in the microprocessor sector but in difficulty for several years. Intel is indeed seeking to catch up in the niche of chips adapted to the development of generative artificial intelligence (AI).
Sign of the times, Nvidia will replace Intel on the Dow Jones
But the group has never managed to truly expand beyond its historic CPU chip business and is posting financial results hardly. Its turnover reached $54 billion in 2023, down almost 30% compared to 2021, when Pat Gelsinger took the reins of the group. Analysts expect a net loss for this year 2024, which would be the first since 1986.
Apple is trying to catch up in the generative AI segment
Apple arrived very late in the generative AI segment, almost two years after the launch of ChatGPT. It only deployed its first generative AI system, called « Apple Intelligence », on its smartphones, computers and tablets, thus marking its official entry into the star technology of Silicon Valley. On Thursday, chief executive Tim Cook insisted that the brand's new generation of devices, from the iPhone 16 to the iPad mini, had all been designed to optimize the use of generative AI.
The executive also revealed that, in the three days since it was put online, the latest version of the iOS operating system, 18.1, adapted for generative AI, had been downloaded at double the rate of the previous version. Officials nevertheless warned that the deployment of generative AI in the Apple ecosystem would be “ over time ». Apple « prioritizes efficiency over speed », noted Jacob Bourne, Emarketer analyst. “This could make sense or hurt depending on the pace at which its competitors improve their AI capabilities. »
(With AFP)
