Nvidia is now more valuable than Intel

Nvidia is now officially more valuable than Intel, according to NASDAQ. The GPU company topped its chipmaking competitor’s market cap at the moment.

So far, Nvidia has a market cap of $251 billion, which is the total value of its market shares. Intel is only at $248 billion, making it technically worth more than the CPU giant.

The rise of quality for the GPU company and Intel’s innovation woes are likely the culprit. The latter is losing ground, especially in the CPU market where AMD is overtaking.

Nvidia Corp has its value improve by 70 percent

The rise for Jensen Huang’s company comes from the unbelievable gains they had. Last year, their share value skyrocketed by 70%, which is superb.

It helps that the company is not manufacturing its own chips, which is Intel’s woe. The excessive cryptocurrency boom that needed a ton of GPU power also paved the way. These two crucial areas fueled the massive overload of value for the entire business.

Their shares are now valued at a little above $415 at the time of this writing. The forecast is going higher and higher, pushing them way above their 2018 value. To put it into perspective, their highest value in 2018 came at $286.48.

Before the cryptocurrency boom took effect, they had a peak share value of $281. The shockwaves of the crypto bubble popping pushed the company’s prices down after. Now, the company’s finances don’t tie to some fickle pan mining scheme.

GeForce still Nvidia’s biggest brand

For Nvidia, their most valuable brand at the moment is their GeForce line of GPUs. The company’s Ampere GPU lineup will likely come at the end of this year. The general excitement around the brand is creating a strong market cap.

The company is also creating strong data-center positioning for their company. Their compute-focused tech is something Jensen Huang likes to tout as their driving force. Even then, the excitement around RTX 3080 and AMD RDNA 2 will power them up.

The company is also trying to push out its Ampere compute architecture. This data center push, together with the A100, is something Jensen Huang loves showing off.

It’s crucial to remember, however, that market cap is a perception of a company’s worth. This perception is not the amount of money the company generates. Intel still has a superb revenue of $72 billion, compared to the GPU company’s $10.9 billion.

AMD is starting to overlap Intel in the CPU market. The last thing the GPU company wants is for AMD to flip them too.

AMD is pushing its RDNA lineup over the next couple of years.  Nvidia would need to do its best to keep ahead.

Featured image courtesy of DANIEL CONSTANTE/Shutterstock

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