Artificial intelligence (AI) is now seriously refurbishing the top list of the world’s most valuable companies. Nvidia, which makes computer chips that act as the engine behind, among other things, the tool Chat GPT, has only in the last few weeks climbed and captured fourth place on the list. Behind the technology giants Microsoft, Apple and the state-owned oil company Saudi Aramco, lies Nvidia, with a market value of around NOK 20,300 billion. It is said that no other company has grown faster in value. The world’s most valuable companies These are the top ten largest companies in the world, measured by market value: Microsoft – 3,058 billion dollars Apple – 2,847 billion dollars Saudi Aramco – 2,065 billion dollars Nvidia – 1,939 billion dollars Amazon – 1,813 billion dollars Alphabet (Google) – 1,797 billion dollars Meta Platforms (Facebook) – $1,239 billion Berkshire Hathaway (the investment company of investor legend Warren Buffet) – $900 billion Eli Lilly (pharmaceutical company) – $731 billion TSMC (Taiwan Semiconductor Manufacturing Company) – $669 billion Source: Companiesmarketcap.com Knuser the expectations – This is the first wave of the investments that have been made in KI. Nvidia’s development gets a lot of attention because it is a foreshadowing of what is to come. We are only in the initial phase of what this technology can mean for the technology sector and for society in general, says Emilie Krutnes Engen. She is an analyst at DNB Markets. Emilie Krutnes Engen is an analyst at DNB Markets. Photo: Stig B. Fiksdal On Wednesday, the company presented figures for the last quarter (November-January), and once again Nvidia crushed the expectations of both stock market analysts and the market. Tala showed a strong increase in income of 265 per cent, compared with the income in the same quarter the previous year. In three months, the company brought in NOK 232 billion at today’s exchange rates. The share shot up The strong numbers caused investors to send the share price straight up on the stock exchange in the USA on Thursday. It rose 16 percent on Thursday, which means that the market value of the company increased by almost NOK 3,000 billion in one day. To put it in context: the company’s value has risen to just under four times Equinor’s market value in one trading day. In the past year, the share has risen a staggering 231 percent. – They have the best computer chips in the world for artificial intelligence and now everyone wants them. So that’s why they sell like grass and actually make a couple of billion kroner per day by selling these, says investment director Robert Næss at Nordea. Investment director Robert Næss at Nordea. Photo: Emma-Marie B. Whittaker / n652996 Top investment in the Oil Fund But why should we care about the stock market rise of this American company? Yes, because Nvidia is one of the companies that Oljefondet has invested the most in. At the end of last year, Oljefondet had an ownership position of 1.17 per cent in the company. At that time, it corresponded to 14.5 billion dollars. If the ownership position has not changed, the value has now increased to 22.6 billion dollars. In other words, Nvidia’s stock market rise has added around 8 billion dollars to the Oil Fund in less than two months. And if co-founder and Ndvidia CEO Jensen Huang is to be believed, the company will only continue to grow in the future. He believes that so-called generative AI – which is able to generate text, images or video – has hit the “tipping point”, and says that demand is increasing all over the world. – Definitely not a bubble And for now they don’t have any very strong competitors, according to DNB analyst Engen. – You see initiatives from others, but for now there is no one who is a major threat to Nvidia in the short term. It will take time for other players to build up the same capabilities as Nvidia. It has not been done overnight, says Engen. But could this strong stock market rise in companies operating with artificial intelligence be a stock or financial bubble? No, according to investment director Næss. – What is special now is that the money is flowing in. The big companies are investing massively, but then the vast majority of companies are still waiting, so things can happen there. I think this is definitely not a bubble, I think this is the first step of the future, says Næss.
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AI giant Nvidia climbs to the top among the world’s most valuable companies – news Norway – Overview of news from different parts of the country
