Nvidia sees its capitalization jump by $184 billion in a single day
Monday January 18, 2021 was a particularly fruitful day for semiconductor specialist Nvidia*. Following the publication of its quarterly report, and thanks to an increase of more than 24% in its share price, the company’s capitalization did not fall, but recorded a historic leap of $184 billion. This is one of the biggest results ever achieved in a single day on the stock market.
This phenomenal performance shows just how rich the age of semiconductors really is. As in the days of the gold rush, it’s the sale of shovels that pays the most, not the counterpart of mines. Nvidia*, and technology companies in general, are the source of the wealth that is spreading today.
Nvidia’s success and guidance for the next quarter
Nvidia’s financial results and outlook for the next quarter were very positively received by investors. Management announced revenues in the range of $10.8 to $11.2 billion, compared with the consensus figure of $7.2 billion, representing a difference of over 50% on market expectations.
According to Timur Turlov, CEO of Freedom Holding Corp, the Data Center segment is behind Nvidia’s phenomenal growth. These results show just how essential artificial intelligence is to technological innovation and business progress. The company’s guiding principle has therefore been successfully implemented, which should contribute to a stable financial performance and promising results.
Nvidia’s long-term commitment to the AI revolution
Nvidia is making a long-term commitment to the AI revolution, with a planned increase in revenues in this area in the second half of the year. The company needs to increase its capacity to meet this demand quickly and efficiently: it is in discussion with contractors, including the well-known TSMC.
Nvidia CEO Jensen Huang estimates that in the next ten years, all data centers will have accelerated thanks to the use of specific chips dedicated to different tasks for maximum efficiency. This solid financial backing demonstrates the growing buzz around AI technology, which is supported by Nvidia.
AI brings opportunities to many companies
Artificial intelligence emerged in the news at the end of last year, and many companies have seized this opportunity. As a result, many players are likely to benefit from the multiple advances that AI will bring.
Adobe has actively integrated AI tools into all its products, particularly in design and graphics, AMD is one of the world’s leading manufacturers of server and DC chips, and Amazon is actively exploiting AI in all its internal processes and business segments. Amazon’s cloud division is actively developing server capacity to train and apply AI models as well as with its own chips. Broadcom is in a privileged position to benefit from the growing demand for AI solutions. Alteryx is integrating AI into its software products and platforms, Baidu has launched a ChatGPT equivalent already integrated into its search engine, and Salesforce is developing proprietary AI solutions to make its customers more productive.
Of course, the list of companies benefiting from this trend is still long and will be even longer, as AI is still in its infancy and we’ll be seeing many interesting developments in the near future. So it’s worth keeping an eye on the AI sector to stay at the cutting edge of technological advances.