Nvidia, the chipmaker that makes graphics processing units for the gaming and professional markets, has overtaken Intel as the seventh-largest company in the United States.
It has also surpassed Meta’s position on the list as a result of this achievement.
And with Facebook currently in a downward spiral, things don’t appear to be looking well for the corporation.
A reshuffling of the ranks of the most valuable US companies reflects Nvidia’s NVDA, has had +6.36 percent rapid ascent over the past few years, as well as Meta’s FB, +5.37 percent recent fall from grace, which has shaved $267 billion off the company’s market value on Wednesday, February 9, when the market closed.
READ MORE: WHY GLASSDOOR HAS NAMED NVIDIA AS BEST PLACE TO WORK IN THE US IN 2022
The chipmaker has risen fast in market capitalization as strong momentum in its gaming and data-center sectors has resulted in improved financial performance.
According to Wells Fargo analyst Aaron Rakers, the ramp of Nvidia’s Ampere graphics processing unit (GPU) is still “early in its cycle.”
Nvidia is currently immediately behind Berkshire Hathaway Inc. BRK.A, +0.39 percent BRK.B, +0.29 percent, which had a $706.97 billion valuation as of Monday’s trade.
Nvidia was the 15th largest U.S. firm a year ago and the 50th largest two years ago. It had previously held the No. 7 slot after defeating Berkshire in November, but this is the first time it has surpassed Meta.
Meta has identified a number of business hurdles that it anticipates to hinder its performance. These challenges forced Meta to provide a weaker-than-expected outlook last week, causing company shares to plummet to their lowest level on record.
The social network company is feeling the effects of Apple Inc. AAPL, +0.83 percent’s recent privacy-related measures, which limit the ability of third parties to track user actions online.
Meta must also deal with shifting user preferences as a result of TikTok’s rise. While Meta’s TikTok-like feature in Reels is gaining traction among consumers, the firm still has room to improve Reels’ revenue potential
NVIDIA is based in Cambridge in Massachusetts, employs 3,387 people and had assets of more than $1.9 billion at the end of 2020.
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