Nvidia has truly become investors' favorite company. Before the presentation of its financial results, the company became the 3rd most valuable in the world behind Apple and Microsoft.
Jensen Huang with a GeForce RTX 3070
Where will Nvidia's rise stop? Formerly mainly known for its gaming graphics cards, in just a few years the company has become an international champion in computing power. It is in particular artificial intelligence that has allowed the firm to really take off. In just one year, it increased its profits 8-fold.
Today, it even competes on the stock market with Alphabet, the parent company of Google, and Amazon. Will we soon talk about GAMAMN?
A $1.72 trillion company
Looking in the rearview mirror, we can see the evolution of Nvidia's stock on the stock market. The company quickly moved up the ranks. An Nvidia share cost $40 in 2019, compared to nearly $700 today in 2024. This is the first time that a company mainly involved in semiconductors and hardware has managed to intrude among the tech giants. like Apple, Microsoft or Google. Nvidia has become the 3rd most valuable company in the world.
The evolution of Nvidia shares over 5 years
However, this beautiful story could well end very soon. Nvidia is due to present its financial results this Wednesday, February 21, 2024 and the Stock Exchange is eagerly awaiting the details. At the point where Nvidia's action experienced some turbulence, the brand let itself be caught up by Amazon and Google at the start of the week. On the other hand, if financial results exceed Wall Street's expectations, Nvidia could once again experience financial growth.
On the horizon, however, competition is preparing not to leave the AI market entirely to Nvidia. We can think of Groq, a small startup that wants to offer a philosophy other than Nvidia's all-GPU, but also and above all of Microsoft. The latter has also been one of the champions of AI for the past year, and would like to no longer be dependent on Nvidia graphics cards to power its data centers. Microsoft is working on dedicated AI chips to replace Nvidia's expensive GPUs.
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