Four of the five most valuable companies in the world, Apple, Microsoft, Amazon, and Google, are also the most recognized public brands. NVIDIA, which this week briefly overtook Microsoft and became the most valuable company in the world (now only third), is not among the top 100 most famous names in the latest list Interbrand.
NVIDIA’s value has increased almost ninefold since the end of 2022, driven by demand for its AI processors, with the company’s products accounting for more than 80% of the market for these chips. Several of the largest technology companies are the main buyers of its chips.
«As a company that has recently entered the global arena, NVIDIA has not had the time or resources to strengthen its brand to protect future revenues. …Weak brand strength will limit its value, despite its market capitalization»,” says Greg Silverman, Interbrand’s global director of brand economics.
NVIDIA’s annual revenue growth exceeded 200% in each of the last three quarters. According to LSEG, in fiscal year 2025, revenue is expected to almost double compared to a year earlier and exceed $120 billion.
Apple, which ranks first in the Interbrand ranking, makes the vast majority of its money by selling iPhones and other devices to consumers around the world. Microsoft, in second place, is a corporate sales giant, but is universally known for its Windows and Office software. The third, Amazon, aims to be a one-stop shop for consumers, and Google, No. 4, is many people’s front door to the Internet. The only user group where NVIDIA is widely known is among gamers.
NVIDIA was founded in 1991, when artificial intelligence was in its infancy. Until recently, the company’s main focus was on developing video cards. For years, the GeForce brand and the green logo have been well known to people who are passionate about gaming. Nowadays, NVIDIA’s gaming video adapters are just a relatively small side business. In the last quarter, revenue from it amounted to $2.6 billion, or 10% of total sales.
Unlike Intel, the company has never «sold» its brand with the help of bright advertising campaigns. However, the NVIDIA brand is growing rapidly now. The firm’s data shows that its brand awareness has quadrupled over the past 12 months, which will help when it comes time for the next Interbrand ranking. According to Vanda Research, NVIDIA shares have become the most popular among retail investors.
Source: CNBC