Nvidia Corp. is worth more than $ 300 billion for the first time since 2020 remains a watershed year in the semiconductor sector for companies not named Intel Corp.
Nvidia NVDA,
shares closed up 6.7% at $ 493.48, giving Santa Clara, a California-based chipmaker, a market capitalization of $ 303.49 billion to firmly position it as the largest U.S. chip company. The milestone comes just before Nvidia is scheduled to report second-quarter revenue on Wednesday.
Nvidia’s stock has been on fire all year, increasing 110% and shifting its market capitalization above Intel’s INTC,
for the first time in July. After jockeying positions for several sessions, Nvidia left Intel in the dust after Intel said that the next generation of 7-nanometer chips would be delayed until at least late 2022 due to production problems.
The level of $ 300 billion is a very even for Intel, which last saw a $ 300 billion market cap in November 2000, when the dot.com bubble was in full swing. On Monday, Intel’s cap stood at $ 208.10 billion.
Intel’s pain in 2020 has also translated into AMD’s Advanced Micro Devices Inc.,
profit. AMD has been selling several versions of 7-nm chips throughout the year, just coming off strong earnings and indications that Intel’s company profits were rising faster.
For its part, AMD recently registered its own milestone of the market cap, closing above a valuation of $ 100 billion for the first time earlier this month.
While Intel’s shares are up 18% for the year, AMD’s are up 80%. In comparison, the PHLX Semiconductor Index is SOX,
is up 20%, the S&P 500 index SPX,
is up 5%, and the tech-heavy Nasdaq Composite Index COMP,
is up 24%.
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