Nvidia shares closed at a $208.27, up 4.3%, pushing its market value above $5 trillion for the first time since October, a milestone no other semiconductor company has reached, reports CNBC.
The company is now $1 trillion ahead of its closest competitor, Alphabet, and just 2% below its all-time intraday high of $212.19 from last October.
NVIDIA’s jump in value was attributed to Intel’s strong results, according to industry coverage. Intel reported earnings of 29% share, far above the expected one cent, and revenue of $13.58 billion compared to the estimated $12.42 billion.
The positive momentum spread: AMD shares rose over 14% to $349.54, Qualcomm went up more than 8% to $144.85, and the Philadelphia Semiconductor Index marked its 18th straight day of gains.
Big tech companies like Google, Microsoft, Meta and Amazon, as well as AI developers OpenAI and Anthropic, depend on Nvidia’s GPUs. At the same time, these customers are also Nvidia’s main competitors. The four largest hyperscalers are both Nvidia’s biggest clients and are working hard to develop their own chips to rely less on Nvidia.
This is the main paradox behind Nvidia’s value: the companies most eager to replace Nvidia are also the ones helping it grow. Every dollar spent on Nvidia GPUs today helps build the research, data, and infrastructure that could one day compete with Nvidia.
The four biggest hyperscalers plan to spend about $700 billion on capital expenses this year, with much of that going toward chips. For now, most of this money is going to Nvidia’s headquarters in Santa Clara.
