Nvidia has overtaken Intel as the most valuable US chipmaker for the first time since the company was founded in April 1993.
The graphic component maker currently stands at $248 billion, just above Intel with a $246 billion value. This milestone was achieved on Wednesday (8th July 2020) as Nvidia’s shares rose 2.3% in afternoon trading to a record of $404.
Since Nvidia expanded from its core personal computer chip business into data centers, automobiles, and artificial intelligence, the company’s shares have been amongst the strongest performers on Wall street.
In 2020, Intel’s stock has lost almost 3%; however, while Nvidia’s stock has surged 68%. The main reason behind this is the sudden shift to remote working amidst the pandemic. According to analysts, the ongoing pandemic will continue to fuel fast growth in Nvidia’s datacenter business.
As far as Intel is concerned, the chipmaker is facing a lot of competition from foreign competitors, which has resulted in declining market capitalization. The company has already fallen below South Korea’s Samsung Electronics and Taiwan Semiconductor Manufacturing Co. The US chipmaker has also suffered a couple of setbacks in its supply chain due to the pandemic as it has surged the costs related to the development of upcoming “Tiger Lake” 10-nanometer processors.