Nvidia (US:NVDA), Apple (US:AAPL), Microsoft (US:MSFT), Games Workshop (GAW), Spectris (SXS) and R&Q Insurance (RQIH)
AI chip designer Nvidia (US:NVDA) has surpassed Apple (US:AAPL) and Microsoft (US:MSFT) as the most valuable company in the world.
Nvidia’s share price rose another 10 per cent in the past week as its market cap hit $3.34tn (£2.6tn). Last week, Apple briefly reclaimed its position at the top from Microsoft after the announcement of its own AI product at its Worldwide Developers Conference. But both have now been leapfrogged by Nvidia.
Since the launch of ChatGPT at the end of 2022, Nvidia’s share price has risen over 700 per cent. The rally was initially driven by rapid earnings growth, which meant the forward PE ratio dropped from 35 times in January 2023 to 24 at the start of this year. But this year the forward PE multiple has expanded to 45 as share price gains outpace earnings growth.
Nvidia has maintained its impressive development cycle with chief executive Jensen Huang announcing two new chips this year. Eventually, AI will have to start producing some significant productivity benefits for this valuation to be justified. AS
Read more: The lesser-known stocks competing with Nvidia
Games Workshop’s profit growth picks up pace
Games Workshop (GAW) shares were up 7 per cent in early trading after the Warhammer maker said in a brief trading update that its profit growth accelerated in the second half of the year to 2 June. The company forecasts an annual pre-tax profit of at least £200mn, up 17 per cent from last year and better than the 14 per cent pace of growth posted in the first half. Analysts had pencilled in an annual profit of around £190mn.
Management expects core revenue of at least £490mn, up 10 per cent year-on-year, with licensing revenue set to climb £5mn to £30mn. The full-year results are due for release on 30 July. CA
Read why we’re bullish on Games Workshop
Randall and Quilter enters liquidation
Any investors left in non-life insurer R&Q Insurance (RQIH), formerly Randall and Quilter, will be left with nothing after the company suspended its shares and entered liquidation after its cash ran out before a rescue deal could be completed on terms that would not wipe out shareholders. The company has been on the rocks for years, with its market capitalisation falling from £500mn to below £300,000 before the suspension.
The company had split into the Accredited division and the ‘legacy’ business, with a sale of Accredited for $170mn-$210mn in cash to cover debts.
The company flagged last week the buyer of Accredited, Onex, said it would just buy the business out of liquidation instead of the deal reached in October. “Following the board's exploration and evaluation and taking all other relevant factors into consideration, including the cash resources currently available to the company, the Board has concluded that the alternative proposal [going into liquidation] represents the best option to secure value at this time,” R&Q said. AH
