Business
Nvidia rides AI wave to become first company to reach $4 trillion market value
Nvidia notched a market capitalisation of $4 trillion on Wednesday, making it the first public company in the world to reach the milestone and solidifying its position as one of Wall Street’s most-favoured stocks. Shares of the leading chip designer rose as much as 2.5 per cent to an all-time high of $164, benefiting from the ongoing surge in demand for artificial intelligence technologies.
Nvidia’s soaring market value underscores Wall Street’s confidence in the rapid growth of AI, with the company’s high-performance chips forming the backbone of this technological advance. The stock’s recent rally follows a sluggish start to the year, when the emergence of a Chinese discount artificial intelligence model developed by DeepSeek shook confidence in stocks linked to the sector.
“It started out as being a gaming chipmaker and then a crypto mining chipmaker and now as a chipmaker for artificial intelligence computing power,” said Art Hogan, chief market strategist at B Riley Wealth.”It is continuing to move forward and be a clear early winner of artificial intelligence.” Nvidia achieved a $1 trillion market value for the first time in June 2023 and tripled it in about a year, faster than Apple and Microsoft, the only other U S firms with a market value of more than $3 trillion.
Microsoft is the second biggest U S company, with a market capitalisation of $3.75 trillion. Its shares were last up 1.3 per cent at $503. Nvidia has rebounded about 74 per cent from its lows in April, when global markets were jolted from U S President Donald Trump’s tariff volley. Optimism around trade partners reaching deals with the U S have lifted stocks of late, with the S&P 500 hitting an all-time high.
Nvidia holds a 7.3 per cent weight on the S&P 500, the biggest on the index. Other tech behemoths, Apple and Microsoft, account for around 7 and 6 per cent, respectively. The company is worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data, and exceeds the total value of all publicly listed companies in the UK. Its stock trades at a 12-month forward price-to-earnings ratio of 32, below its three-year average of 37, according to data compiled by LSEG.
It reported a total revenue of $44.1 billion in the first quarter, marking a 69 per cent jump from a year ago, along with a profit of 81 cents a share. For the second quarter, Nvidia expects revenue of $45 billion, plus or minus 2 per cent. It will report second-quarter results on August 27. Including the session’s gains, Nvidia is up more than 22 per cent this year compared to a nearly 15 per cent rise in the Philadelphia SE Semiconductor Index.
Business
Amazon Starfish: Using AI to Create Ultimate Source of Product Info
Amazon has a new ambition for its giant online marketplace, and it’s using generative AI to execute the vision.
The company is already the largest e-commerce platform in the Western world, selling millions of products itself and supporting millions of third-party merchants who offer even more items through the platform and its warehouse and logistics network.
That’s not enough for Amazon, though. Recently, the company has been expanding its marketplace in new ways. This year, for example, Amazon launched a “Buy for Me” feature that recommends products from other brands’ websites and lets shoppers buy those from within the Amazon app.
An internal planning document obtained by Business Insider sheds new light on how Amazon is using AI to help these endeavors.
The document, from late 2024, describes a project, codenamed Starfish, that uses AI models to “synthesize” information from various data sources, such as external websites and images. It then generates “complete, correct, and consistent product information globally.”
The eventual goal of the multiyear project is to make Amazon the best source of product information for “all products worldwide,” the document added.
More listings, less time
Starfish is part of an effort to simplify product listings for third-party sellers. Amazon began rolling out elements of this in 2023 to help merchants craft stronger product descriptions from short inputs or individual URLs. It also introduced AI tools that automatically generate product images and video ads.
“Starfish enriches product data using LLM, improves Catalog at scale by filling missing information, correcting errors, rewriting titles, bullet points, and product descriptions to make them more relevant for the customer,” the document explained.
In recent years, the company has stepped up efforts to improve its listing quality, removing billions of inactive or non-selling products from its marketplace, BI previously reported.
A $7.5 billion boost
Generating more product listings and making them accurate and compelling can potentially increase sales, which is crucial for Amazon’s e-commerce business to keep growing.
Manually creating listings is time-consuming for sellers, so speeding up this process could be a win-win for Amazon and its merchants.
Amazon’s internal document estimated that Starfish would contribute $7.5 billion in extra gross merchandise sales in 2025, thanks in part to driving better conversions and building a broader product selection.
GMS measures the total value of all items sold through the company’s e-commerce platform. $7.5 billion is a lot of sales, however, Amazon generates hundreds of billions of dollars in annual revenue from its Marketplace business.
Broader ambitions
Indeed, the internal document shows the Starfish initiative has much broader ambitions. Turning Amazon’s Marketplace into the top global source of all product information is a goal that puts the company on a track to potentially compete more with Google’s Shopping service.
One day, Starfish could scour the global web to collect mountains of data that would help the AI system auto-fill product descriptions by itself.
According to the internal planning document from late 2024, the new AI tool was expected to collect product information from 200,000 external brand websites this year by “crawling, scraping, and mapping external items to Amazon catalog.”
Many Big Tech and AI companies have bots that crawl the internet to scrape, collect, and index data from websites. Mapping is the process of organizing and displaying the extracted information. Amazon has its own crawler, called Amazonbot.
The company says on the Amazonbot webpage that this crawler collects information “to improve our services, such as enabling Alexa to more accurately answer questions for customers.”
It’s unclear if this bot is being put to work on the Starfish project, or whether the crawling and scraping parts of this initiative are still in the works.
An Amazon spokesperson declined to comment on this part of the project, but shared other details with BI in a statement.
The spokesperson confirmed that Starfish is mapping data for certain features, such as the new “Buy for Me” recommendation system for external products.
“Amazon is continuously leveraging generative AI to enhance the customer and seller experience,” the spokesperson added. “This feature improves descriptions of products in our catalog for sellers, ultimately helping customers find the products they want and need.”
To measure Starfish’s effectiveness, Amazon is running A/B tests, internally comparing the sales of products that received AI enrichment and those that haven’t, according to the internal document. Amazon has also built a new bulk listing feature and plans to expand Starfish to additional countries later this year, it explained.
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Business
Nvidia’s Huang to Meet Chinese Leaders While AI Curbs Deepen
(Bloomberg) — Nvidia Corp. co-founder Jensen Huang will meet with senior Chinese officials in Beijing next week, signaling the company’s commitment to a vast market Washington is increasingly seeking to isolate.
The chief executive officer is seeking discussions with leaders including the commerce minister, a person familiar with the situation said. Huang is planning those meetings while attending the International Supply Chain Expo in Beijing next week, the person said, asking to remain anonymous discussing a plan still in flux. That conference is one of the Chinese government’s signature events, and has featured the likes of Apple Inc.’s Tim Cook in the past.
Huang, who’s been vocal about the need for US companies to access the world’s largest semiconductor market, is a frequent visitor to China. He’s returning to the country at a sensitive time for the company, which has become ensnared in a broader US-China tech conflict as the foremost producer of chips for AI development.
It’s unclear what Huang intends to address with Chinese officials. Nvidia representatives declined to comment on his agenda. A commerce ministry spokesperson said the agency had no information to share, when asked about Huang’s visit. A representative for the conference organizers declined to comment. The Financial Times reported earlier on Thursday that Huang planned to meet top officials during the expo in Beijing.
Nvidia’s CEO this year branded Washington’s efforts to stall Beijing’s semiconductor ambitions a failure, arguing that the US should ease technology export curbs because they hand local rivals like Huawei Technologies Co. an unfair advantage. The company is now barred from selling all but its lower-end, gaming-focused graphics processors in China.
Any relaxing of restrictions would benefit Nvidia. It made history this week as the first company to hit $4 trillion of market value, a testament to its central role in providing the hardware for a post-ChatGPT AI infrastructure building boom.
Still, Washington remains intent on pursuing a campaign to choke off China’s access to cutting-edge technology. The Trump administration has drafted plans to restrict shipments of AI chips to Malaysia and Thailand, part of an effort to crack down on suspected semiconductor smuggling into China.
Nvidia said in May — before the latest curbs — it expects to lose out on $8 billion of sales this quarter because of US restrictions generally. It plans to design and sell a new, lower-end AI chip for China this year that won’t run afoul of those regulations, the Financial Times reported.
More stories like this are available on bloomberg.com
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