Despite a market capitalization of over $3 trillion, Nvidia is little known | Wilnesh News

apple, Microsoft, Amazon and Google According to data from the consulting firm, as of the end of 2023, the four leading global brands International brand. They are also four of the five most valuable companies in the world.

the other is NvidiaThis week, the company once surpassed Microsoft to become the world’s largest company by market value.

However, despite Nvidia’s valuation reaching $3.1 trillion (it had hit $3.3 trillion before the two-day slide), Nvidia didn’t even crack Interbrand’s latest list of the 100 Most Iconic, which consists of: composition: McDonald’s, Starbucks, disney and Netflix.

Nvidia’s historic rise in valuation (the stock has risen nearly ninefold since the end of 2022) has been driven almost entirely by demand for its graphics processing units (GPUs), which are at the heart of generating the boom in artificial intelligence and, more broadly, Say, because of the hype around artificial intelligence. Nvidia has more than 80% of the chip market share used to train and deploy artificial intelligence software such as ChatGPT. A handful of large technology companies are the main buyers of its chips.

The speed of Nvidia’s rise and its relative lack of contact with consumers have left the 31-year-old company’s brand recognition on Main Street lagging far behind its appeal on Wall Street. Ranking 100th on Interbrand’s 2023 list is Japanese camera maker Canon, while Dutch beer maker Heineken ranks 99th.

Greg Silverman, global director of brand economics at Interbrand, said: “As a product company that has recently entered the global stage, Nvidia does not have the time, nor the dedicated resources, to change its brand persona and strengthen its brand to protect future revenue.” Silverman added, The risk for Nvidia is that “despite its high market capitalization, its weak brand will limit its value. “

A spokesman for Nvidia declined to comment.

In the past three quarters, Nvidia’s annual revenue growth rate has exceeded 200%. According to LSEG, revenue in fiscal 2025 is expected to nearly double from the same period last year to more than $120 billion.

The company’s data center GPUs, which accounted for 85% of sales in the most recent quarter, are installed in large facilities and typically require expensive teams of data science and supercomputing experts to configure them to efficiently create artificial intelligence software.

In contrast, Interbrand’s No. 1 Apple derives most of its revenue from selling iPhones and other devices to consumers around the world. Second-ranked Microsoft is an enterprise sales giant but is best known for its Windows and Office software. Amazon, ranked No. 3, aims to be the everything store for consumers, while Google, ranked No. 4, is the gateway to the web for many.

South Korean electronics giant joins Interbrand’s top 10 list Samsungas well as three automobile companies (toyotaMercedes-Benz and BMW), Coca Cola and Nike.

The bottom 24 are Nvidia’s competitors Intelthe company is famous for manufacturing core processors for laptops and PCs and its long-runningIntel processor” advertising campaign. Even Hewlett Packard EnterpriseA company that makes servers ranked 91st.

Ranking of the world’s 100 most valuable brands publish This month, Nvidia ranked sixth in Kantar BrandZ’s survey, jumping 18 spots from the previous survey. The brand’s overall value increased 178% in one year to approximately $202 billion. Kantar surveys corporate buyers to evaluate brands that sell primarily to other businesses to produce an overall estimate of brand value.

“Nvidia is as important and relevant to B2B buyers looking to make large internal purchases for their companies as Apple is to consumers buying iPads or Macs,” said senior brand strategist Marc Glovsky. Du told CNBC.

While Nvidia may not be a name your parents or your children know well, it does resonate with a certain corner of the consumer world. Just ask your die-hard gaming buddies.

When Nvidia was founded in 1991, artificial intelligence was still an emerging field. The company’s main focus was designing chips that could quickly draw digital triangles, a basic capability that led to a huge expansion of 3D gaming.

For years, Nvidia and its GeForce brand and green logo have been well-known to those who have tuned their computers to run the most advanced games. Nvidia supplies chips for the Nintendo Switch game console, which has shipped more than 140 million units worldwide.

Unlike Intel, Nvidia never puts its name in front of consumers through flashy advertising campaigns. For chipmakers, gaming is now just a nice sideline. In the latest quarter, its revenue was US$2.6 billion, accounting for 10% of total sales, an increase of 18% over the same period last year.

When it comes to Nvidia’s most important product, companies and organizations vying for its artificial intelligence chips must go through an extensive quoting and sales process, often through computer equipment companies such as Dell Or HPE. These vendors sell complete systems, including memory, CPUs, and other parts. Even experts who want to train artificial intelligence models are more likely to rent Nvidia access through a cloud provider than build their own server cluster.

Still, Nvidia’s profile is growing rapidly. Nvidia has become the most widely held stock among retail investors, according to data collected and published by Vanda Research last month.

Silverman said that while the brand did not make Interbrand’s 2023 Top 100 list, the company’s data shows that its brand awareness has quadrupled in the past 12 months, which will help the next ranking.

Maybe then people will know how to say its name, a subject that has been a source of debate On an obscure game forum. The company pronounces it en-VID-ia.

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