Tuesday, June 18, 2024

"Nvidia overtakes Microsoft as most valuable stock in the world" (NVDA)


From Yahoo Finance, June 18, 2024: 

Nvidia (NVDA) overtook Microsoft (MSFT) on Tuesday as the most valuable company in the world just two weeks after it took the No. 2 spot from Apple (AAPL).

Nvidia's stock price rose about 3.5%, eclipsing $135 per share and giving the chipmaker a market capitalization over $3.33 trillion. With a 0.4% slide on Tuesday, Microsoft's market cap stood at nearly $3.32 trillion.

Shares of Nvidia are up more than 215% over the last 12 months and more than 3,400% over the last five years. Year to date, Nvidia has gained 175%; Microsoft stock is up just less than 19% in 2024.

Nvidia first crossed a $1 trillion market cap on June 13, 2023. The stock advanced north of $2 trillion on March 1, and then rapidly crossed the $3 trillion mark for the first time on June 5. The company's advance from a $1 trillion to a $3 trillion market cap was the fastest on record.

Nvidia's surge has made it a top weighting in the S&P 500 (^GSPC), and the chipmaker has served a pivotal role in the benchmark index hitting record highs in 2024.

Up until May, the S&P 500 had traded with a near-perfect correlation to Nvidia's price movement, meaning that as Nvidia's stock rose, so did the broader index. As of Monday, Nvidia's stock gains alone had contributed about one-third of the S&P 500's year-to-date rise, according to data from Citi's equity research team.

Nvidia completed a 10-for-1 split on June 10.

The company's rise comes amid the generative AI explosion that kicked off when OpenAI debuted its ChatGPT platform in late 2022. Nvidia's chips, modified graphics cards, and CUDA software platform are designed to both train and run AI programs, giving it a strategic advantage that experts say will take rivals AMD (AMD) and Intel (INTC) years to overcome.

Nvidia is the tech industry's go-to supplier for AI chips and integrated software....


It seems like yesterday we were pitching Nvidia as the brains of your car, but it was actually going-on a decade ago:

May 2015
Nvidia Wants to Be the Brains Of Your Autonomous Car (NVDA)

We've mentioned, usually in the context of the Top 500* fastest supercomputers, that:
Long time readers know we have a serious interest in screaming fast computers and try to get to the Top500 list a couple times a year. Here is a computer that was at the top of that list, the fastest computer in the world just four years ago. And it's being shut down.
Technology changes pretty fast. 
That was from a 2013 post.

Among the fastest processors in the business are the one's originally developed for video games and known as Graphics Processing Units or GPU's. Since Nvidia released their Tesla hardware in 2008 hobbyists (and others) have used GPU's to build personal supercomputers.
Here's Nvidias Build your Own page.
Or have your tech guy build one for you.

In addition Nvidia has very fast connectors they call NVLink.
Using a hybrid combination of IBM Central Processing Units (CPU's) and Nvidia's GPU's, all hooked together with the NVLink, Oak Ridge National Laboratory is building what will be the world's fastest supercomputer when it debuts in 2018.

As your kid plays Grand Theft Auto....

 A bit more troubling was April 2018's "UPDATED—NVIDIA Wants to Be the Brains Behind the Surveillance State (NVDA)"

In 2015 we started using a boilerplate intro to the company, here's a 2016 version saying "Focus on the AI/Machine Learning":

NVIDIA: Don't Buy the Stock For The Autonomous Car Stuff (or virtual reality) NVDA; TSLA; IBM

The stock is up $2.21 (+2.64%) at $85.85. [divide that by 4 to account for the stock split in 2021]
Yesterday the usually very reliable Investor's Business Daily headlined a story "Nvidia Upgraded On Growth In Car, Cloud, Virtual Reality Fields". As we say in our standard intro to the stock:
Before we go any further, our NVIDIA boilerplate:  
We make very few calls on individual names on the blog but this one is special. 
They are positioned to be the brains in autonomous vehicles, they will drive virtual reality should it ever catch on, the current businesses include gaming graphics, deep learning/artificial intelligence, and supercharging the world's fastest supercomputers including what will be the world's fastest at Oak Ridge next year.
Not just another pretty face.  
Or food delivery app.

It worked out.

NVDA NVIDIA Corporation monthly Stock Chart

 March 22, 2024:

I Have Heard Of This Nvidia You Speak Of (first call for a $10 trillion market cap) NVDA

I have heard wondrous tales of immense wealth,

Of amazing deeds performed as if by magic.

Yes I have heard*of all of this....but hang on one 'effin minute with the $10 trillion talk. Let's get to $1000 on the stock before we join Coleridge at the hookah. [In Xanadu did Kubla Khan...]

And earlier today: 

Nvidia's Financial Dominance (NVDA)

The stock closed the regular session up $4.60 (+3.51%) at $135.58 giving the company a market capitalization of $3.335 Trillion.

After hours: $135.95 +0.37 (+0.27%)