Nvidia’s stock surged, propelling its market value beyond Alphabet’s, just a day after surpassing Amazon, thereby securing the third position among the world’s most valued companies. As of Thursday, Nvidia’s market value exceeded that of Google’s parent company, Alphabet Inc., placing it behind only Apple and Microsoft. The remarkable growth of the AI chipmaker on Wednesday, driven by investors’ anticipation of its upcoming quarterly reports, saw its stock rise by 2.46%, reaching a value of $1.825 trillion, while Alphabet’s stock increased by 0.55%, resulting in a value of $1.821 trillion.
Nvidia has emerged as a primary beneficiary of the tech industry’s push to integrate AI into their products and services, mirroring the substantial investments made by major players like Google and Amazon in their own AI initiatives.
The company’s recent surge in stock value occurred just one day after it surpassed Amazon’s market capitalization for the first time in two decades. Amazon’s market capitalization reached $1.776 trillion following a 1.39% increase in its stock price on Wednesday.
With a commanding share of approximately 80% in the high-end AI chip market, Nvidia has experienced a 47% increase in its stock price this year, following a more than tripling of its value in 2023. The high demand for Nvidia’s top-tier components has resulted in shortages for customers, while AI developers are encountering waitlists spanning several months to access its processors through cloud computing providers.
Over the past six months, Nvidia has established its dominance on Wall Street among AI companies, emerging as one of the top performers throughout 2023. Nonetheless, much of its recent growth can be attributed to the anticipation surrounding its forthcoming quarterly reports.
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