Nvidia now is the most valuable chipmaker in the U.S. Being boosted by the news, NVDA stock price is moving higher.
Nvidia Corporation (NASDAQ: NVDA) stock is in green. The positive tendency is attributed to the fact that the chipmaker surpassed Intel Corporation (NASDAQ: INTC) to become the most valued chipmaker in the United States.
Nvidia (NVDA) stock closed at 3.49% higher yesterday. This puts its market capitalization at $251.31 billion. Intel market cap is $248.15 billion. The stock price reached $408.64.
At the time of filing this report, in the pre-market Nvidia stock is another 1.34% up at $414.13.
Nvidia (NVDA) Stock Up as the Company Evolves
Nvidia (NVDA) stock price has been going on strong for the past few years. Nvidia has spread its branches into artificial intelligence, data centers, and cars.
At the same time, Intel has had issues in diversifying from its personal computing business. The chipmaker made several mistakes in catching up in the smartphone business.
Speaking of cloud computing, Nvidia (NVDA) is partnering with Google LLC (NASDAQ: GOOGL) (NASDAQ: GOOG) on its A100 Tensor Core graphics processing unit (GPU). The GPU handles difficult tasks. These include the most demanding of Artificial Intelligence ones. Google Cloud aims to offer up to 16 GPUs on a single Virtual Machine (VM).
The A100 is the most advanced chipset that the company has produced. Its capabilities include 5G services, video analytics, scientific computing, and so on.
It is just one example of how Nvidia is meeting computing needs. Pundits expect that the onset of the COVID-19 pandemic will spur further interest in Nvidia (NVDA) stock price. It has grown by about 68% in this year alone.
More companies are shifting to remote work on a semi-permanent basis. The emergence of this trend portends well for Nvidia (NVDA) stock price as the chipmaker will dominate cloud computing services.
It’s important to remember that Intel started as the world’s most advanced chipmaker. It is still is. The company has been the world’s biggest chipmaker by revenue since 1992.
Intel Missed the Smartphone Revolution
One of the inventors of the integrated circuit Robert Noyce was an Intel co-founder. The company failed to catch up in the smart mobile revolution. New generation chipmakers have held sway in the field of mobile computing.
On the other side, Intel didn’t hold the cloud computing business as well. Nvidia has taken hold of the cloud computing business and made its mark. The great thing is that cloud services drive mobile apps. It makes the long term value of Nvidia’s business stable. Advancements in the various field of data science, artificial intelligence, automation, robotics, and others will make the rise of companies who invent GPUs inevitable.
It may be the beginning of great things that investors have been hoping for as far as Nvidia (NVDA) stock price is concerned.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.