NVIDIA, the first company to exceed $ 4,000 billion in market capitalization

The NVIDIA electronic flea giant became the first company on Wednesday to cross the symbolic threshold of the US $ 4,000 billion in stock market valuation, carried by the enthusiasm of investors for values ​​linked to artificial intelligence (AI).

Shortly after opening in Wall Street, the price of its action exceeded US $ 164, allowing it to display a market capitalization of more than $ 4,000 billion US dollars, before reflecting slightly.

As a comparison, it is more important than the Commence of France, the United Kingdom or India.

If you look at the market, it is a reflection or mirror of the economy and the strongest sectors of the economy are, by far, technology and theIA […] This is why Nvidia is worth as much and continues to growcomments with theAFP Adam Sarhan, analyst of 50 Park Investments.

Since the beginning of the year, the Nvidia course has jumped by more than 20 % while the Nasdaq index, with a strong technological coloring, has known a more measured advance, by more than 6 %.

There is a business in the world which is the basis of the revolution of theIAand it’s Nvidia.

Since the success of Chatgpt (OPENAI) at the end of 2022, the technological firm founded 32 years ago has experienced a fairy tale.

Its costly graphics cards (GPU), already central to the video game industry, have become essential for all companies that cause models ofIA generative.

Whether it is Perplexity, Open Ai, Gemini […] Nvidia’s equipment is the cause of most of themunderlines with theAFP Steve Sosnick, analyst ofInteractive Brokers.

Demand for infrastructure IA de Nvidia is incredibly sustainedassured in May Jensen Huang, emblematic boss of the Californian company.

The race forIA

If Nvidia does not make the list of its customers public, it has however linked partnerships with the biggest names in the technological sector such as Meta (Facebook, Instagram), Microsoft or Alphabet (Google).

Several of these giants recently announced massive investments, of the order of tens of billions of dollars, to strengthen their position in the race forIA.

The fact remains that the rise of Nvidia is not without difficulty while the preponderant place occupied by the technological firm is questioned.

The United States has expressed export restrictions on its chips to Beijing, fearing that Chinese actors in theIA exceed the American pioneers.

This forced Nvidia to spend an exceptional load of US $ 4.5 billion in the first quarter of its offbeat exercise.

Lose access to the Chinese market of theIAthat we see reaching almost 50 billion [$ US]would have a significant negative impact for our activity and would benefit our competitors in China and elsewherewarned in May Colette Kress, financial director of the company.

The leader reportedLimited options To be able to continue serving Chinese customers in accordance with American regulations.

In parallel, Nvidia was shaken by the success of the young Chinese company Deepseek, who managed to build models ofIA Comparable to those of Openai (Chatgpt) and other American leaders, with less sophisticated components and in large numbers (including some Nvidia chips).

After the presentation of this new Chinese player in January, Nvidia lost more than 600 billion US dollars in a few hours.

The return in large shape of the manufacturer of processors and graphics cards represents just enthusiasm that accumulatesmore It tells us everything about the present and nothing about the futurehowever, warns with theAFP Kim Forrest, de Bokeh Capital Partners.

Dan Ives is more optimistic, believing that not only could the company be joined by Microsoft in the very closed circle of companies having exceeded $ 4,000 billion in stock market valuation, but thatOver the next 18 months, the emphasis will be on the club of US $ 5000 billion.