Nvidia Now the World’s Biggest Semiconductor Company
Nvidia has become the No. 1 semiconductor company in the world in terms of market capitalization.
Nvidia has become the largest semiconductor company in the world by beating TSMC. These days, the company is expanding its business to cover artificial intelligence chips and so on. Meanwhile, TSMC is in the middle of intense competition in the global foundry market and smartphone manufacturers’ orders for its products are decreasing due to the ongoing global component shortage.
Nvidia’s market cap increased from US$579.15 billion to US$617.92 billion on Oct. 26, when TSMC’s market cap was US$592.14 billion. The Taiwanese company lost its leading position in about 15 months. On Oct. 27, the figures were US$611.1 billion and US$589.86 billion, respectively. They were followed by Samsung Electronics (US$404.39 billion), ASML (US$331.07 billion), Broadcom (US$215.32 billion) and Intel (US$194.76 billion).
This has to do with the growth potential of the global AI chip market. According to market research firms, the market is expected to grow from US$18.1 billion to US$34.3 billion from this year to 2023. Nvidia is currently leading the market with its general-purpose graphics processing unit products.
Nvidia’s new business models also include metaverse service Omniverse and cloud gaming service GeForce Now. The former is an online space where designers can create 3D images and videos and its applications include architectural design. The service requires subscription and the RTX graphics card of Nvidia is required for the subscription. The latter is a game subscription service with a monthly price of about US$10.
Nvidia is not completely free from risk factors though. First of all, non-semiconductor companies such as Apple and Tesla are developing chips on their own. Besides, its acquisition of ARM has been delayed since last year’s announcement of the US$40 billion deal with the competition authorities of the European Union and others refusing to approve the deal.