Powered by AI, Nvidia establishes itself as the world’s leading capitalization ahead of Apple and will join the Dow Jones – Libération

Artificial intelligence: from fascination to concernfileLeader in the production of graphics chips, essential for the artificial intelligence sector, Nvidia passed Apple again on Tuesday evening, after having already temporarily overtaken it twice. A more than favorable context which also opens the doors to the flagship stock market index in the United States.

Little known to the general public, Nvidia nevertheless dominates the financial markets. The American semiconductor giant once again closed in the world’s largest capitalization position on Tuesday evening, November 5, after overtaking Apple during the daily session on the New York Stock Exchange. The group from Santa Clara, California, now has a capitalization of 3,431 billion dollars, ahead of the 3,377 billion of the firm producing iPhones.

The American multinational had already closed on the roof of the economic world for the first time in mid-June, before quickly losing its rank. Nvidia briefly overtook Apple again at the end of October, for only a few minutes.

All signals suggest that the semiconductor giant will soon beat the stock market value record held by Apple, whose capitalization climbed to $3.61 trillion in mid-October. Since the beginning of October 2022, and the arrival of ChatGPT, the value of Nvidia shares has multiplied by more than eleven. Its stock price was then around $12 compared to almost $140 Tuesday evening.

Nvidia is considered the undisputed leader and most advanced semiconductor manufacturer in the graphics card (GPU) market. Chips with increased computing capabilities compared to a traditional microprocessor and essential equipment for applications such as machine learning with generative AI and the processing of large quantities of data.

Intel «out»

Nvidia will also enter the flagship Dow Jones index on Friday, which ranks the 30 largest and most influential companies in the United States, and in which it will replace its competitor Intel. The latter, a historic figure in the microprocessor sector, has been in difficulty for several years. These financial results are at half mast with a turnover of $54 billion for 2023, down 30% compared to 2021. The company is expected to experience its first net loss in 2024 since 1986. To remedy this , Intel is particularly seeking to catch up in the niche of chips adapted to the development of generative artificial intelligence (AI).

Apple also arrived very late in this now strategic segment, almost two years after the launch of the sector leader ChatGPT. It only deployed its first generative AI system, called “Apple Intelligence”, on its smartphones, computers and tablets at the end of October, marking its official entry into Silicon Valley’s new star technology. Managing director Tim Cook had insisted that the brand’s new generation of equipment, from the iPhone 16 to the iPad mini, had all been designed to optimize the use of generative AI.

But despite financial results that could make any other company jealous, investors’ first doubts about artificial intelligence are emerging. After announcing its results for the second quarter of 2024 at the end of August, Nvidia notably saw its shares fall by 7%. In question: a turnover over the period of 30 billion dollars, lower than the 38 billion hoped for on the markets. Enough to sow doubt about a possible AI bubble.