Nvidia is now worth more than Intel

midian182

Posts: 5,871   +48
Staff member
What just happened? Thanks to a recent surge in its stock price, Nvidia has overtaken Intel to become the most valuable chipmaker in the US. Following a 2.3 percent jump yesterday afternoon, team green’s shares have now reached $408, putting its market cap at $251.3 billion, ahead of Intel’s $248.1 billion.

We hear a lot about how AMD is now a big challenger to Intel, but it still lags far behind Chipzilla when it comes to company valuation. Lisa Su’s firm has a market cap of $62.5 billion, almost a quarter of what Intel is worth.

Nvidia, however, now holds the title of the biggest chipmaker in the US, and the third-largest in the world, despite not actually producing its own chips; it leaves that to third-party foundries such as TSMC. Intel’s chips, on the other hand, are created entirely in-house.

Nvidia’s stock has risen 68 percent in 2020, while Intel has seen a 3 percent increase. Like Samsung, the lockdowns have benefited Nvidia—the explosion of people working from home meant a higher demand for its enterprise products. Server manufacturers are snapping up the new, 7nm Ampere A100 GPUs, which recently saw a PCIe version (photo below). Moreover, anticipation over the upcoming RTX 3000-series has also helped boost the company’s share price.

Reuters notes that despite the stock price surge, Nvidia’s sales are still a fraction of Intel’s. While the former’s revenue is expected to rise 34 percent this year to $14.6 billion, analysts predict Intel’s 2020 revenue will increase 2.5 percent to $73.8 billion.

When it comes to market caps, calculated by multiplying the share price by the total number of a company’s outstanding shares, Apple remains the top tech firm thanks to its massive $1.65 trillion valuation, followed closely by Microsoft at $1.61 trillion.

Permalink to story.

 

Andrighi

Posts: 7   +2
Impressive! I don't think Nvidia stock will be higher than Intel for long, after all Nvidia's portfolio is smaller than Intel.
 

Adi6293

Posts: 498   +564
Good for nVidia and all it's share holders but I feel like they are overvalued by quite a bit. How can a company that makes 5.5 times less than Intel and without it's own fabs be "worth" more than Intel? I suppose this also means RTX3000 will be expensive since share holders want to see their shares go up in price not down
 

bviktor

Posts: 175   +351
Don't forget to mention that Mellanox acquisition. They're pretty much THE high-end networking manufacturers, especially when it comes to NICs.
 
  • Like
Reactions: SirDigby

Rayneofpayne

Posts: 166   +182
No wonder. nVidia has been pushing constant innovation and performance.
Intel has been failing to deliver new products for a long time now.
Well Lithography shrinks aren't exactly easy, however the main downfall was just giving consumers the same chip starting with the original I7-920/2600k to 7700k with only slight improvements and poor value from PCIe lanes and core counts.
This is almost similar to EA where at first your marketing strategy was formed after your product was made, they both went downhill when the product was centered and made after or according to the marketing strategy. I mean tech industry isn't the only group or industry that confirmed to this principle Automotive manufacturers fell prey to this.

I mean keep in mind Intel was refining the same product from 2008 to 2017. That's nearly a decade of no innovation.
 

poohbear

Posts: 457   +334
Nvidia's stock is way ahead of itself, we saw this in 2018 when it reached $290 and then plummeted to $130ish and stayed under $200 for another year.

The reality is with Covid19 everyone is piling into tech stocks at a ridiculous rate...once a vaccine is found and the rotation out of tech stocks begins, their stock price will come back down to earth...hard!

Don't get me wrong, Nvidia is a phenomenal company, but these valuations are insane. Just like I felt sorry for the guy buying @ $290 back in 2018, I feel sorry for the guy buying @ $420 in 2020.
 
Last edited:
  • Like
Reactions: Reehahs

mshrf

Posts: 10   +5
How can a company that makes 5.5 times less than Intel and without it's own fabs be "worth" more than Intel?
The same reason a company like Tesla has a higher market cap than Toyota...because investors believe so.
And yes, that's crazy.
 

mattferg

Posts: 50   +28
Tad confused. If we’re going to rule out actually making the chips as a requirement for being biggest chip manufacturer, there’s only one company in contention for this title, and it isn’t nVidia.

It’s Apple.