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Nvidia's Market Cap Beats Intel For First Time

(Image credit: Nvidia)

Nvidia stock pulled ahead of Intel’s today for the first time, emerging with a $248 billion market cap against Intel’s $246 billion. That officially makes it the US’ most valuable chip maker and the third largest chip maker in the world, which is impressive for a company that can’t physically produce a single chip.

Unlike Intel, Nvidia is a fabless chip maker, meaning it designs chips but contracts out their actual production to third-party foundries like TSMC (which also happens to be the second largest chip maker in the world, just behind Samsung). Intel, meanwhile, owns its own fabs and handles creating chips entirely in house, from design to production. But clearly, that comes with its disadvantages.

There’s a number of reasons for the potential jump in Nvidia stock, with the explosion of AI workloads in the data center being chief among them. The 7nm Ampere GPU architecture, which speculators expect to be announced within the next couple of months and will relate to the Nvidia RTX 3080, is certainly another reason for the market's optimism. We've already seen leaks surrounding Nvidia's next-gen GPUs, so it's clear they're on the cusp of release.

Of course, market valuation only looks at the stock market, as opposed to total revenue. Intel still beats Nvidia on that front, with Reuters claiming that analysts see Nvidia’s revenue rising 34% this year to $14.6 billion as opposed to Intel’s projected rise of 2.5% to $73.8 billion.

That’s to be expected when pitting a GPU maker against a CPU maker- every computer needs a CPU, whereas GPUs are sometimes optional depending on the task. Still, Nvidia boasts a higher revenue growth rate than Intel, and with a 68% stock growth rate this year vs Intel’s 3%, it’s clear that the GPU-maker is growing faster than Intel overall. Reuters attributes this to data center demand following the global pandemic.

Nvidia's accelerated growth rate is also great news for TSMC, which is currently battling with the US to keep Huawei as a client and is also looking to build an Arizona fab starting next year. A larger Nvidia means more potential business for them should they need to quickly fill a vacancy.

Building all your parts yourself gives you greater control. But the market shows that, sometimes, it’s worth sacrificing that control for more flexibility.

  • JayNor
    Intel is delivering performance at low power with their integrated Xe design in the Tiger Lake chip, based on several posted benchmarks.

    Raja's twitter site shows pictures of three very large discrete Xe chips. PCIE5/CXL plus a scalable tiled GPU design and a ton of work going into oneAPI to support them.

    What will NVDA MC look like if Intel takes a third of the discrete GPU market over the next two years?
    Reply
  • spongiemaster
    JayNor said:
    What will NVDA MC look like if Intel takes a third of the discrete GPU market over the next two years?

    What makes you think they will even have the fab capacity to reach that market share in 2 years? Intel isn't exactly knocking it out of the park with 10nm right now. Intel's first 7nm product is supposed to be a GPU and that isn't expected until late next year, and I don't think anyone is really expecting much from Xe until that point is reached. Intel isn't going from 0-33% dGPU market share in a year.
    Reply
  • JayNor
    The announced plans for their Ponte Vecchio Xe GPU are that it will be on Intel 7nm.
    Reply
  • JayNor
    apparently Intel 10nm second generation processing is doing better. Tiger Lake performance leaks are much improved over Ice Lake, with the Xe GPU in particular performing 2x better than the gen11 integrated GPU on Ice lake.

    Intel is manufacturing small, scalable GPU chiplets, then stitching them with EMIB. They have some manufacturing expertise in this area from their FPGA production.
    The Aurora project is at the end of next year, but note that Raja's site shows three other big discrete GPU chips are already in the lab.

    While their Ponte Vecchio Xe is in Intel 7nm, I've seen rumors about them building some Xe GPUs at TSM.

    Perhaps people don't know that they have been building 7nm eyeq5 chips at TSM since 2018.
    Reply
  • JayNor
    This is the rumor I mentioned ... so, maybe Xe GPU capacity will be solved by using TSM.

    https://wccftech.com/intel-xe-dg2-gpu-tsmc-7nm-process-node-2022-launch-rumor/
    Reply