A day after topping Amazon, Nvidia’s market worth and stock price surged, making it the third most valuable corporation in the world, quickly overtaking Alphabet.
Just one day after surpassing Jeff Bezos’ Amazon, Nvidia rose to become the third most valuable business in the world on Thursday, surpassing Google’s parent firm Alphabet Inc. Currently, Nvidia’s market capitalization trails only that of Microsoft and Apple.
The excitement among investors for Nvidia’s impending quarterly reports led to the AI chipmaker’s remarkable increase on Wednesday. As for Alphabet, its stock increased by 0.55% to value $1.821 trillion, while the company’s stock increased by 2.46% to value $1.825 trillion.
About the corporation
Nvidia Corporation is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia initially focused on the development of graphics processing units (GPUs) for gaming and professional markets. Over the years, Nvidia has expanded its product offerings to include a wide range of technologies, including artificial intelligence (AI), data centers, autonomous vehicles, and gaming.
Nvidia is best known for its graphics processing units (GPUs), which are widely used in gaming PCs, professional workstations, and data centers for tasks such as deep learning, scientific computing, and cryptocurrency mining. The company’s GPUs are also used in autonomous vehicles for processing sensor data and making real-time driving decisions.
In recent years, Nvidia has become a key player in the AI and data center markets, with its GPUs being used in large-scale AI training and inference tasks. The company’s AI technologies are used in a variety of industries, including healthcare, finance, and retail, for tasks such as image recognition, natural language processing, and recommendation systems.
Nvidia’s products and technologies are used by a wide range of customers, including gamers, content creators, researchers, data scientists, and enterprises. The company has a strong presence in the technology industry and continues to innovate in areas such as AI, data center computing, and autonomous vehicles.
Tech Giants’ AI Arms Race Boosts Nvidia’s Market Cap Above Amazon’s for the First Time in Two Decades
Just as major internet companies like Google and Amazon are investing heavily in their artificial intelligence (AI) programs, Nvidia has benefited greatly from the race between them to incorporate AI into their goods and services.
The business’s most recent stock increase occurred just one day after it concluded a trading session with a market capitalization greater than Amazon’s for the first time in twenty years. Amazon’s shares increased 1.39% on Wednesday, bringing its market valuation to $1.776 trillion.
Almost 80% of the market for high-end AI chips is controlled by Nvidia, a position that has increased the company’s stock price 47% this year after it more than tripled in 2023. Top-tier Nvidia components are in short supply, and AI developers must wait months on large waiting lists to use the company’s processors through cloud computing providers.
When it comes to AI firms, Nvidia has been ruling Wall Street for the past six months and is among the top gainers overall in 2023. But the majority of its recent expansion can be attributed to its next quarterly reports.
Stocks of Nvidia surge on Wall Street
Nvidia stocks have soared over 24 percent on the S&P 500 index in the past year due to the investor excitement surrounding AI. In the meantime, the stock saw a massive 239% gain in 2023 and a 49 percent spike in the first two months of 2024.
When it comes to AI businesses, Nvidia is in the lead, and Wall Street is getting more and more excited by its quarterly reports. It is anticipated that the business would report profits that are noticeably higher than those of the previous quarter.
Based on LSEG data, analysts predict that Nvidia’s sales for the January fiscal quarter will more than triple to $20.37 billion, driven by demand for its premium AI chips. Analysts predict that its adjusted net profit will reach $11.38 billion, a 400% increase.
