Nvidia surpasses Alphabet, Amazon to become world’s third most valued company
Nvidia on Thursday surpassed Google’s parent company Alphabet Inc in market value just a day after zooming past Jeff Bezos’ Amazon, becoming the third most valued company in the world. Now, Nvidia’s market value is only behind Apple and Microsoft.
AI chipmaker Nvidia recorded immense growth on Wednesday, owing to investors’ anticipation over its upcoming quarterly reports. The company’s stock rose 2.46%, putting its value at $1.825 trillion, while Alphabet’s stock climbed 0.55%, leaving it with a value of $1.821 trillion.
Nvidia has been a top beneficiary of technology companies’ race to build AI into their products and services, just as big tech companies like Google and Amazon are making hefty investments in their artificial intelligence (AI) initiatives.
The company’s latest gain in stock came just a day after it ended a session with a market capitalisation above Amazon’s for the first time in two decades. Amazon’s market capitalization was $1.776 trillion after its stock rose 1.39% on Wednesday.
Nvidia controls about 80% of the high-end AI chip market, a position that has boosted its stock price 47% this year after it more than tripled in 2023. Customers face shortages of Nvidia’s top-of-the-line components while AI developers face months-long waiting lists to use its processors through cloud-computing providers.
Nvidia has been dominating Wall Street over the last six months when it comes to AI companies, being one of the overall top gainers of 2023. However, most of its recent growth is owed to its impending quarterly reports.
Nvidia stocks rally on Wall Street
The investors’ hype surrounding AI has led to a massive boom in Nvidia stocks over the last year, jumping over 24 percent on the S&P 500 index. Meanwhile, the stock recorded a spike of 49 percent in the first two months of 2024, with a whopping 239% growth in 2023.
Nvidia is leading the race when it comes to AI companies, with its quarterly reports just building the anticipation of Wall Street. It is expected that the company will show significantly higher profits as compared to the last quarter.
Analysts, on average, see Nvidia’s January fiscal quarter revenue more than tripling to $20.37 billion, fueled by demand for its top-shelf AI chips, according to LSEG data. Analysts see its adjusted net profit surging over 400% to $11.38 billion.
The Nvidia quarterly reports are due on Wednesday, February 21.
(With inputs from Reuters)
