Nvidia is now the second largest market capitalization in the world

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The American semiconductor giant Nvidia on Wednesday June 5, 2024 became the third company to cross the threshold of $3,000 billion in market capitalization, after Apple and Microsoft. Shortly before Wall Street closed, the firm also exceeded Apple by +0.78%, or 9 billion more than Apple.

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The group's meteoric rise is dizzying if you look in the rearview mirror: Nvidia benefited from a valuation of $1,000 billion in May 2023, then $2,000 billion in February of this year (thus surpassing Amazon or Alphabet-Google), before reaching the extremely rare threshold of 3,000 billion dollars yesterday. Last May, Nvidia also reported having made $14 billion in profits in one quarter thanks to its chips.

Thanks artificial intelligence!

This meteoric rise can be explained by several factors: on the one hand, companies dedicated to the construction of semiconductors all benefit from a favorable climate. The main competitors AMD, Qualcomm and Broadcom have all reported an increase in their market capitalization: +3.86% for AMD, +3.68% for Qualcomm and +6.18% for Broadcom.

However, the increasingly strong demand for Nvidia group chips is mainly explained by the development of generative artificial intelligence. In the space of 18 months, since the explosion of technology, the group's valuation has multiplied by 7.8. Since the start of 2024, Nvidia's action has also increased by 80%.

The H100 chip is the main responsible for this hegemony in the AI ​​market, and the manufacturer does not intend to stop there. Three months ago, it was able to present its latest chip, the Blackwell B200, intended to further support the artificial intelligence revolution. Today, chips dedicated to accelerating artificial intelligence from Nvidia represent between 70 and 95% of the market according to CNBC.

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