Nvidia Trails Intel in Market Value Growth as Chipmaker Faces Challenges

Nvidia's market value has grown significantly over the past year, but its growth pales in comparison to that of Intel. While Nvidia's market value increased by about 24% to $5.4 trillion, Intel's market value skyrocketed by approximately 474% to around $510 billion.

The majority of Intel's market-value gain came from a higher stock price, which rose roughly 400% over the past year. Additionally, the company issued new shares, increasing its share count by about a sixth. This growth is largely attributed to the CHIPS Act agreement with the U.S. government and other investors.

Nvidia's earnings, on the other hand, reflect a more substantial increase in market value. The chipmaker earned $159.6 billion over the trailing year, more than double its earnings from the previous year, on revenue of $253 billion. In contrast, Intel reported an $11.3 billion loss dominated by a non-cash charge tied to shares held for the U.S. government.

The differing market-value gains between the two companies highlight the importance of considering both share price and share count when evaluating market performance. While Nvidia's growth is impressive, Intel's valuation is heavily dependent on future earnings, which have yet to materialize.