Leading global technology companies like Nvidia and TSMC profited handsomely from the booming demand for AI, causing their market capitalization to surge in October 2024.
Nvidia, headquartered in Santa Clara, California, led the surge in market capitalization among global companies in October, driven by continued demand for its new supercomputer AI chips. Following this trend, more and more companies are integrating AI into their daily operations.
The relentless demand for artificial intelligence chips has helped Nvidia's market capitalization grow rapidly.
Nvidia's market capitalization rose 9.3% in October to $3.26 trillion, while its equipment supplier, TSMC, saw its market value increase 6.5% to $832.8 billion. This surge followed the release of better-than-expected third-quarter earnings and a strong outlook on AI demand from the Taiwanese-based world's largest contract chipmaker.
Nvidia's stock closed today (November 5th) up 0.5% at $136.05, marking another milestone in the company's remarkable growth driven by demand for artificial intelligence chips. In a recent appearance on the BG2Pod podcast, Nvidia CEO Jensen Huang shared his vision for a $1 trillion transformation in global data center infrastructure.
In contrast to the developments at Nvidia and TSMC, the market capitalization of Meta Platforms and Microsoft declined in October, after both companies warned of rising AI costs.
Microsoft, which holds 20% of the cloud services market, has reported some supply constraints related to the delivery of Nvidia's Blackwell GPUs. However, the tech giant maintains a close relationship with Nvidia and proudly claims to be the first cloud service provider to deploy Nvidia's Blackwell system with GB200-powered AI servers.
Nvidia will replace Intel on the Dow Jones Industrial Average this week (November 8). The change, announced by S&P Dow Jones Indices, reflects Nvidia's spectacular breakthrough in the semiconductor industry and the company's rise as a leading US chip stock.
Mark Haefele, chief investment officer at UBS Global Wealth Management, maintains a positive outlook on AI, advising investors to take advantage of short-term volatility as an opportunity to increase their holdings in quality AI stocks. Haefele predicts total spending on AI infrastructure will increase 50% this year to $222 billion, with a further 20% increase projected by 2025, reaching $267 billion.
"We continue to favor semiconductor stocks and large technology companies and expect the AI-related portfolio to deliver 35% earnings growth in 2024 and 25% in 2025," Haefele stated.
In Asia, Tencent Holdings' market value fell 9% to $483 billion in October, as Chinese stocks declined sharply amid sluggish economic data, geopolitical tensions, and a pause among investors to assess government support measures.
The market capitalization of US pharmaceutical company Eli Lilly also fell 6.45% to $787.6 billion last month as quarterly sales of its popular weight-loss and diabetes drugs failed to meet Wall Street estimates, leading to a sharp drop in the company's stock.
Source: https://www.baogiaothong.vn/nvidia-va-tsmc-vo-bam-nho-bung-no-nhu-cau-ai-192241105193415112.htm
Comment (0)