(News Bulletin 247) – Still riding the wave of Generative Artificial Intelligence, the graphics processor specialist has overtaken Amazon and Alphabet.

It was inevitable. Graphics card (GPU) specialist Nvidia has joined the top 5 largest market capitalizations in the world.

According to the website companiesmarketcap.com, at 5:20 p.m. Nvidia had narrowly doubled Alphabet and Amazon, ranking fourth in the world with a capitalization of $1,820 billion, ahead of Google’s parent company ($1,816 billion) and the e-commerce giant. -trade (1.800 billion dollars) of a few billion.

Only Microsoft ($3.11 trillion), Apple ($2.902 billion) and the Saudi oil group Saudi Aramco ($2.034 billion) are still ahead.

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A dizzying dynamic

To see if this ranking will not change between now and the close on Wall Street at 10 p.m. But the dynamic of the group in any case turns out to be quite dizzying.

Nvidia rose 2.6% this Monday around 5:55 p.m., 50% since the start of the year, and 240% over one year. The action marks by far the strongest performance of the “magnificent seven” of Wall Street (Apple, Microsoft, Tesla, Amazon, Meta, Apple, Alphabet and therefore Nvidia) this handful of big techs which have single-handedly carried or almost the American market last year.

Remember that Nvidia was the big winner on the stock market in generative artificial intelligence, its products being used to provide computing power to train and develop the conversational robots ChatGPT (OpenAI) and Bard (Google). This allows it to generate triple-digit growth: in the third quarter its revenues increased by 206% year-on-year. Fourth quarter results will be released on March 19.

Obviously the question of stock market potential arises: currently the average price target of analysts compiled by investing.com is 7% lower than the level of Nvidia shares. But we imagine that the analysts will raise their objectives since of the 53 analysts listed, 49 are buying and four are “neutral”.

The first market capitalization, one day?

As for whether Nvidia can become the world’s largest market capitalization, Frédéric Rozier answered in the negative in a previous article. “I don’t believe in it for a simple reason: Gafam, who are Nvidia’s major customers, will not ultimately agree to depend heavily on a single supplier. Gafam will at least segment the market on graphics processors (by product quality category) and probably do everything to compete”, explained the market expert.

“At present, AMD’s graphics processors are, for example, narrowing the technological gap with Nvidia’s products,” he continued.

“The probability that Nvidia will become the largest capitalization in the world seems difficult to me,” added Jean-Edwin Rhea, fund manager at Quadrille Capital, in News Bulletin 247 on Friday. “Nvidia sells chips to around ten customers who are mega global tech companies. This is not the same as Apple which sells to billions of individuals or the other Gafam which have a huge number of end users,” added he.

The specialist also underlined an important issue: lowering both graphics cards (GPU) and their costs in terms of electricity, with “a new paradigm”. “They (Nvidia, Editor’s note) will make with around ten customers 100 billion of dollars in turnover within a year, then they can rise perhaps to 200 billion. Then the cycle will shift towards alternatives”, explained the manager. If the group is today “essential”, in the long term “it is not sustainable”, he concluded.