Nvidia vs Intel: Market Value Growth Built on Different Foundations

Nvidia and Intel have both seen significant growth in their market value over the past year, but the two companies' gains are built on different foundations.

Nvidia's market value has grown by about 24% to sit near $5.4 trillion as of this writing, while Intel's market value has increased by around 474%, reaching roughly $510 billion. However, Intel's stock price is up approximately 400% over the same period, from around $20 to about $101, indicating a significant increase in share price.

The remainder of Intel's market-value gain came from an increase in the number of shares outstanding, which grew by about a sixth. This was largely due to new stock issued under the company's CHIPS Act agreement with the U.S. government and other investors.

Nvidia, on the other hand, has seen its profits more than double over the past year, reaching $159.6 billion, while revenue rose by about 71% to $253 billion. This growth in earnings suggests that Nvidia's market value grew slower than its profits did, resulting in a lower price-to-earnings ratio of around 34.