Nvidia’s AI Chips Eat Intel’s Lunch: Here’s How Much More You’d Have Made If You Invested $1,000 In Jensen Huang’s Company Instead Of Intel In 2023 – NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC)

Nvidia Corp., led by Jensen Huang, has established itself as a key player in the AI revolution, surpassing its rival Intel Corp. in terms of market capitalization and stock price gains in 2023. The demand for Nvidia’s GPUs, which are well-suited for AI-driven applications, has contributed to its success.

Nvidia’s market capitalization currently stands at an impressive $1.152 trillion, while Intel’s market capitalization is significantly lower at $187.781 billion. This substantial difference between the two companies is expected to continue growing in the future.

In terms of stock price performance, Nvidia’s shares have skyrocketed from $143 at the beginning of the year to $466.27, marking a remarkable 226% increase. On the other hand, Intel’s stock price has risen from $26.73 to $44.54, representing a 67% increase. Investors who had put $1,000 into Nvidia stock at the start of 2023 would now have $3,258.66, whereas the same investment in Intel stock would be worth $1,705.18.

One of the reasons behind Nvidia’s success is its dominance in the data center business. While both Nvidia and Intel do not disclose their AI revenue separately, their data center revenue provides valuable insights. In the third quarter of 2023, Nvidia reported $14.5 billion in data center revenue, almost four times the amount generated during the same period in 2022. In contrast, Intel’s data center revenue dropped from $4.4 billion to $3.8 billion during the same period.

The superior performance of Nvidia’s GPUs in running AI operations has contributed to its success in the data center market. GPUs are more efficient and faster in handling AI tasks compared to CPUs and DPUs. Nvidia’s latest AI chip, the H100, has already gained significant demand, accounting for over 70% of total AI chip sales, according to an estimate by analyst firm Omdia. The company’s ability to meet this demand relies on its partnership with Taiwan Semiconductor Manufacturing Company (TSMC).

Analysts remain optimistic about Nvidia’s future prospects, with a consensus rating of “Buy” and a potential upside of 27.6%. In contrast, the consensus for Intel is a “Hold” rating, with expectations of a potential 22.2% decrease in the company’s stock.

While Nvidia grapples with meeting the demand for its H100 GPU, the upcoming launch of its successor, the H200, in 2024 is expected to create another cycle of scarcity. Despite the challenges, Nvidia’s position as a leader in the AI revolution remains strong.

In conclusion, Nvidia has emerged as a top gainer in the AI revolution, outperforming Intel in terms of market capitalization and stock price gains. The company’s success can be attributed to the high demand for its GPUs, particularly in the data center market. With its dominant position and promising future outlook, Nvidia continues to solidify its role in shaping the future of AI.