Nvidia has outperformed another chip maker and is now more valuable on the stock market than Intel. The price per share reached $ 420 and the market capitalization now stands at $ 258 billion, while Intel holds $ 247 billion (numbers are constantly changing). It is interesting that Nvidia has its chips manufactured by competitors.
Both companies have already recovered from the decline caused by the covid-19 pandemic, and Nvidia’s shares are now a hot commodity. Nvidia except chips for gaming graphics cards it is expanding its reach into data centers (where it is still a minority, but also part of the world‘s largest supercomputers), artificial intelligence and automotive.
On the other hand, Intel has not managed chips for smartphones in the past, and in the field of computer processors, the rival AMD is doing more well. Intel now also has higher costs in developing new Tiger Lake chips on 10nm technology. Intel has recently lost three percent of its value, while Nvidia has grown by 68 percent.
While Nvidia mainly produced graphics cards, it lived next to Intel in symbiosis. Now, he still “doesn’t make computer processors,” but both companies are already competing a lot. It started with chipsets in motherboards. Nvidia experienced a major slump at the end of 2018, but has been growing steadily ever since. Unlike Intel, it does not have its own chip factory, which it has manufactured by other giants according to its design. Most often at the Taiwanese TSMC or at Samsung.
According to expected sales, Intel is still much better off. Analysts expect to earn $ 73.8 billion in revenue this year. Nvidia is expected to raise about $ 15 billion. Nvidia’s current market capitalization is thus mainly due to investors’ expectations for the future. Which does not change the current success of the company.