Both technology companies dominate their home markets. And both are showing amazing growth. Which stock is currently more interesting for investors? The answer is not as clear as one might think
If Nvidia‘s shares climb into the Dow Jones this Friday, then on the one hand it will be an accolade for the chip share, which has recently had a meteoric price trend. In the same way, Nvidia also ennobles the American leading index. It is traditionally designed to be more industrial-focused and has recently lagged significantly behind the more technology-intensive S&P 500. But now the AI chip company Nvidia is replacing the chip dinosaur Intel in the Dow. And that should give the index new momentum. The Nvidia share will probably do the same, as many index fund providers will be forced to load the share into their portfolios.
The first effect of the rise could already be seen this week: Nvidia shares rose by an impressive twelve percent over the week. Jensen Huang’s group is once again overtaking its rival Apple and is once again positioning itself as the most valuable stock exchange company in the world. Nvidia is currently valued at almost $3.4 trillion on the market. The Apple Group “only” has a market capitalization of around $3.2 trillion.
Meanwhile, a technology company also took the lead in the Dax – the software company SAP. The Walldorf-based company presented strong figures for the third quarter, with sales increasing by nine percent and cloud revenue by as much as 25 percent. Artificial intelligence in particular is seen as a catalyst for future growth. All of this also raised the price of Europe’s largest tech company. Compared to Nvidia, the increase of 2.5 percent looks modest on a weekly basis. Nvidia managed that much in one day alone.
Both tech stocks have been on par since June
SAP’s market capitalization also seems quite clear at 255 billion euros. In fact, the software company is almost twice as big as the next two largest companies in the DAX, Siemens and Deutsche Telekom. Both companies, SAP in this country and Nvidia on the other end of the Atlantic, undoubtedly show the dominance that technology currently holds on the stock exchanges. And growth is likely to continue for both.
But for how much longer? And from an investor’s perspective, which stock currently offers better entry opportunities?
