An important milestone was reached yesterday by the U.S. chip industry, on Thursday Nvidia became the most valuable chip maker in the United States after the value of its securities in afternoon trading reached $ 404 after a 2.3% increase. Nvidia’s market capitalization has thus risen to an unprecedented level of $ 248 billion, ahead of $ 246 billion for Intel.
Nvidia has been one of the best performing listed companies in the industry for many years, as the manufacturer has moved beyond its original competence in developing and manufacturing graphics chips for personal computers to integrate data center solutions into its portfolio and open to areas such as like self-driving cars. Intel, on the other hand, which once dominated the world market in all respects, reacted late and inadequately to important changes in the industry, leaving it completely behind the smartphone boom and failing several renewal attempts.
Although chip makers were able to increase their turnover mostly in the wake of the new coronavirus pandemic, while outperforming other industries in the stock market, Intel was much less able to take advantage of the situation than Nvidia. This is well illustrated by the fact that while Intel's stock price fell 2% this year, Nvidia saw a 68% increase in the stock market in parallel, mainly due to the soaring data center business and fundamentally good prospects.
Intel it has also come under increasing pressure internationally, so the company already has two Asian rivals, Samsung Electronics and TSMC, worth more. Intel has also been severely hit by supply difficulties in the epidemic, and the development of the new generation 10-nanometer Tiger Lake processors has consumed more resources than expected.
At the revenue level, however, Nvidia is not yet close to Intel, at least this year's analysts the former is expected to increase its revenue by 34% to $ 14.6 billion this year, while the latter expects the consensus to grow by 2.5%, equivalent to an annual turnover of $ 73.8 billion.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.