Nvidia Becomes World's Largest Company

Show Transcript
Bloomberg Jun 18 15:31 · 23.2k Views

Nvidia's rally has propelled the semiconductor giant's market capitalization over its mega-cap tech peers, helping it clinch the title of the world's most-valuable company.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more

Transcript

  • 00:00 Bloomberg's Bailey Lip Schultz joins us now.
  • 00:02 It is Nvidia's world, and we're living in it.
  • 00:04 Like, that's going to be what I say for the next hour and 10 minutes, Alex.
  • 00:06 I feel like it's been that way for the last few months, though.
  • 00:09 NVIDIA has more than doubled, more than tripled year to date.
  • 00:12 It's
  • 00:13 astounding.
  • 00:13 Right now, $3.35 trillion market value.
  • 00:16 It's added $2.1 trillion in market value this year.
  • 00:19 That's more than Amazon, that's more than Meta, that's more than Berkshire Hathaway.
  • 00:23 Really crushing expectations.
  • 00:25 And it's all about AI and what the future could bring and how NVIDIA is going to take us there.
  • 00:29 Walk us through the Rosenblatt securities upgrades.
  • 00:31 That was like the Today catalyst.
  • 00:33 That was the Today catalyst.
  • 00:34 The interesting thing implied new price target implied a 53% increase from the last close.
  • 00:39 Really the interesting thing, though, from that analyst is saying the real narrative lies in the software that they say complements all the hardware goodness.
  • 00:45 So we've talked at length about AI chips, about how that's really driving NVIDIA higher
  • 00:51 now.
  • 00:51 It almost kind of reminds me of when you looked at Apple becoming a services company.
  • 00:55 Maybe now the
  • 00:57 software component going to be the next leg higher, but again,
  • 00:59 $5 trillion value almost in the next year.
  • 01:02 Yeah, that's not nothing.
  • 01:04 And the Apple services thing, though, didn't work out so well.
  • 01:06 It's still in essence, just a hardware company, if you get right to it.
  • 01:10 We also had a partnership between NVIDIA and HPE
  • 01:12 that was yet another catalyst later in the afternoon.
  • 01:14 What is this partnership?
  • 01:16 Yeah, when you look at that, it really kind of just adds to
  • 01:19 the potential for NVIDIA.
  • 01:20 It's not kind of a
  • 01:22 complete shock, and we've seen NVIDIA really
  • 01:25 making a number of partnerships.
  • 01:26 That's really been the thing when you look at a company like an open AI and some of the catalysts that we've seen for that company where everyone wants to be a part of it.
  • 01:32 So it is interesting and it did move shares higher.
  • 01:35 But it does really seem like the momentum fear is continuing to play out when you look at AI, AI software.
  • 01:41 And that's what that HP partnership really kind of is built on is AI software and what that could drive.
  • 01:46 Again, for a company that is up 3 1/2 percent, which is not anything small
  • 01:50 for the world's largest company, No.
  • 01:52 And at one point you had Hewlett Packard Enterprise hitting a 52 week high on that.
  • 01:56 And it's not just NVIDIA like it is its world and we are living in it.
  • 01:59 But Micron, for example, also having an incredible run earnings coming next week.
  • 02:04 Bank of America listing in one of its top calls in the US market.
  • 02:08 Broadcom also continues to fire on all those cylinders as well.
  • 02:11 A lot of excitement around chips and a lot of excitement around companies who are striking the balance on AI.
  • 02:16 When you look at how an NVIDIA, how an AMD, how a Micron are trading and compare that to Intel, which is really struggling to kind of adapt to this new AI world with their investment in foundry,
  • 02:27 investors are buying the winners.
  • 02:28 It's going to be interesting to see how things continue to play out, especially as it relates to semis, the Sox index in this AI trend.
  • 02:34 But it does seem like betting on the winners has been proving to be a terrific bet.
  • 02:38 And when you look at the expectations for NVIDIA to continue to grow, they've been crushing expectations for the last few years and we're waiting for a pullback, but it doesn't seem to be happening.