Nvidia Corp, whose Tainan-born CEO is today to speak at the informal opening of Computex Taipei, could soon surpass Apple Inc to become the world’s second-most valuable company, as the biggest beneficiary of the surge in adoption of artificial intelligence (AI) applications takes on the iPhone maker that has been the largest Wall Street firm by market value for years.
The reliance of virtually all AI applications such as OpenAI’s ChatGPT on Nvidia’s high-end chips has helped the stock nearly triple in value over the past year to US$2.68 trillion.
In contrast, Apple ceded its No. 1 spot to Microsoft Corp earlier this year as the once high-flying company grapples with weak demand for its iPhones and tough competition in China. It was last valued at US$2.92 trillion.
Photo: Sam Yeh, AFP
“It is certainly notable because Apple has been so dominant for so long, especially on the growth and innovation front. Recently though, Apple’s innovation curve seems to have flattened, showing slower future growth,” Zacks Investment Management client portfolio manager Brian Mulberry said. “On the other hand, Nvidia has been able to catch wave upon wave of growth. Beginning with gaming demand, then crypto and now AI, they have been able to perfectly match innovation with demand and that equals explosive growth.”
The semiconductor company is heavily weighted on the S&P 500 and the NASDAQ and has been pivotal in driving US stocks to record highs. It accounted for more than one-third of the S&P 500’s gains this year.
Nvidia also became the fastest company to grow from US$1 trillion to US$2 trillion this year, zooming past Amazon.com Inc, Google-parent Alphabet Inc and Saudi Aramco.
Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street’s lofty expectations for revenue and profit, with demand for its graphic processors far outstripping supply as Big Tech rushes to embed AI applications.
Sharp increases in analysts’ earnings estimates have resulted in a fall in the stock’s forward earnings valuation, even with the share price racing higher.
It traded at 37 times forward earnings, compared with 48 times earnings a year ago, LSEG Data and Analytics data showed.
Meanwhile, Nvidia CEO Jensen Huang (黃仁勳) is today to speak at the informal opening of Computex Taipei, inaugurating what would be the biggest-ever iteration of Taiwan’s annual electronics showcase event.
His arrival in Taipei, a week ahead of Computex, was greeted with the usual excitement about the homegrown rock star executive.
Huang frequently visits the nation, and this year he would be accompanied by the bosses of almost all the major US chip firms as they race to close the gap on Nvidia in the AI product race.
Fellow Tainan-born executive Lisa Su (蘇姿丰), CEO and chairwoman of Advanced Micro Devices Inc, is to host a keynote at Computex, while Intel Corp CEO Pat Gelsinger, Qualcomm Inc CEO Cristiano Amon and Arm Holdings PLC CEO Rene Haas are all scheduled to speak at the conference, which runs from Tuesday to Friday.
Additional reporting by Bloomberg
In his National Day Rally speech on Sunday, Singaporean Prime Minister Lawrence Wong (黃循財) quoted the Taiwanese song One Small Umbrella (一支小雨傘) to describe his nation’s situation. Wong’s use of such a song shows Singapore’s familiarity with Taiwan’s culture and is a perfect reflection of exchanges between the two nations, Representative to Singapore Tung Chen-yuan (童振源) said yesterday in a post on Facebook. Wong quoted the song, saying: “As the rain gets heavier, I will take care of you, and you,” in Mandarin, using it as a metaphor for Singaporeans coming together to face challenges. Other Singaporean politicians have also used Taiwanese songs
NORTHERN STRIKE: Taiwanese military personnel have been training ‘in strategic and tactical battle operations’ in Michigan, a former US diplomat said More than 500 Taiwanese troops participated in this year’s Northern Strike military exercise held at Lake Michigan by the US, a Pentagon-run news outlet reported yesterday. The Michigan National Guard-sponsored drill involved 7,500 military personnel from 36 nations and territories around the world, the Stars and Stripes said. This year’s edition of Northern Strike, which concluded on Sunday, simulated a war in the Indo-Pacific region in a departure from its traditional European focus, it said. The change indicated a greater shift in the US armed forces’ attention to a potential conflict in Asia, it added. Citing a briefing by a Michigan National Guard senior
CHIPMAKING INVESTMENT: J.W. Kuo told legislators that Department of Investment Review approval would be needed were Washington to seek a TSMC board seat Minister of Economic Affairs J.W. Kuo (郭智輝) yesterday said he received information about a possible US government investment in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and an assessment of the possible effect on the firm requires further discussion. If the US were to invest in TSMC, the plan would need to be reviewed by the Department of Investment Review, Kuo told reporters ahead of a hearing of the legislature’s Economics Committee. Kuo’s remarks came after US Secretary of Commerce Howard Lutnick on Tuesday said that the US government is looking into the federal government taking equity stakes in computer chip manufacturers that
CLAMPING DOWN: At the preliminary stage on Jan. 1 next year, only core personnel of the military, the civil service and public schools would be subject to inspections Regular checks are to be conducted from next year to clamp down on military personnel, civil servants and public-school teachers with Chinese citizenship or Chinese household registration, the Mainland Affairs Council (MAC) said yesterday. Article 9-1 of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例) stipulates that Taiwanese who obtain Chinese household registration or a Chinese passport would be deprived of their Taiwanese citizenship and lose their right to work in the military, public service or public schools, it said. To identify and prevent the illegal employment of holders of Chinese ID cards or
RSS