TCS, Tata Comm, Infosys in focus after NVIDIA pips Apple in market value

AI-focused NVIDIA on Wednesday (June 5, 2024) surpassed Apple to become the world's second most valuable company. The chipmaker giant hit a $3 trillion market cap on Wednesday and it now stands behind the top-ranker software giant Microsoft. Among the top companies in the world by market value, Microsoft has a $3.151 lakh crore m-cap, Nvidia has $3.011 lakh crore, while Apple has $3.003 lakh crore.

What is fascinating about NVIDIA's journey is that it took a little above a year to reach from the $1 trillion to the $3 trillion mark.

In May 2023, it touched the $1 trillion barrier for the first time. In February 2024, it hit the $2 trillion market value, while in less than four months, it has scaled the $3 trillion market value peak.

World's largest companies (m-cap)

Microsoft                                  $3.151 lakh cr
NVIDIA                                       $3.011 lakh cr
Apple                                        $3.003 lakh cr

NVIDIA Market Cap Trend

Month          Market Cap         Time
July 2021     $50000 cr             NA
May 2023    $1 lakh cr             22 months
Feb 2024     $2 lakh cr             9 months
June 2024    $3 lakh cr            3 months

Why is NVIDIA rising higher?

NVIDIA has taken the world by the storm as more than 80 per cent of its market share is in AI chips made for data centres.

It is banking on the opportunity that big companies like Microsoft, Meta, Google and Amazon are in the race to launch AI products.

The other reason is that the demand for GPU-based servers is increasing fast, adding to the company's business.

The Indian government has a plan to buy 10,000 GPUs in the next 18-24 months to increase country's AI capabilities.

The government has approved Rs 10,372 crore for India AI Mission for the next 5 years.

NVIDIA's connection with Indian companies and how their shares are performing in today's trade-

Tata Communications

The company from the Tata group will build the AI cloud platform in India by using NVIDIA's GH200 AI chip.

After NVIDIA touched the $3 trillion mark, Tata Communications shares rose by 2.63 per cent to Thursday's high of Rs 1,795.00 each.

Large-cap Tata firm shares closed trading up by 2.18 per cent, or Rs 38.10, at Rs 1,787.10 apiece on Thursday.

TCS

TCS has a partnership with NVIDIA for AI training of employees.

TCS shares jumped by 2.47 per cent to Thursday's high of Rs 3,839.00 each after closing the previous trading session at Rs 3,746.60 apiece.

The stock of TCS was ended trading up by 2.24 per cent, or Rs 84.10, at Rs 3,830.00 on Thursday.

Infosys

Apart from TCS, Infosys also has a partnership with NVIDIA for AI training of employees.

Infosys shares jumped by 3.06 per cent to Thursday's high of Rs 1,474.9500 each. 

The stock of the company was trading up 2.95 per cent, Rs 42.25, Rs 1,472.50. 

Rashi Peripherals

The company is the primary importer and distributor of NVIDIA's RTX cards in India.

Rashi Peripherals shares rose by 4.67 per cent to Thursday's high of Rs 322.95 each.

The stock of the small-cap company was trading up by 4.02 per cent, or Rs 12.40, at Rs 320.95 on Thursday. 

Netweb Tech

Netweb Tech is in agreement with NVIDIA to build GPU servers in India.

After touching the lower circuit for two consecutive sessions, Netweb Tech staged a comeback on Thursday to reach the upper circuit of 5.00 per cent. The stock hit the Thursday's high of Rs 2,278.15 after closing the previous session at Rs 2,169.70.

The stock of the mid-cap firm closed higher by 5.00 per cent, or Rs 108.50, at Rs 2,278.15 on Thursday.