Nvidia, the American chip manufacturing company, briefly surpassed Amazon in market value on Monday, driven by hopes for artificial intelligence advancements. According to Reuters, Nvidia became the fourth largest American company by market value, reaching a record high stock price of $734.96 and a market cap of $1.82 trillion compared to Amazon’s $1.81 trillion. Nvidia lagged behind Alphabet, Google’s parent company, by a few billion, as Alphabet’s value reached $1.87 trillion, as reported by LSI.
The last time Nvidia exceeded Amazon was in 2002 when both companies were valued at less than $6 billion each. With Amazon achieving higher than expected quarterly sales last month, investors are eagerly anticipating Nvidia’s quarterly results due on February 21st, the last of the giant tech companies to report earnings.
Expectations have risen as the release of the report approaches, with stocks soaring by 47% since the beginning of the year, making it the top performer among companies in the S&P 500 index. Nvidia’s impressive quarterly results and strong projections from the previous year solidified its position as a leader in supplying technology companies working on generative artificial intelligence, such as chatbots and image creation.
The company’s bet on strong demand for AI has boosted Nvidia’s stocks, making it the best performer among the so-called “Magnificent Seven,” with a 223% increase over the past 12 months. Meta, formerly known as Facebook, now ranks second with a 163% rise, surpassing Microsoft in January to become the world’s most valuable company, also due to its focus on integrating AI into its products, while Alphabet holds the third position.
