Barely a day after crossing e-commerce giant Amazon’s valuation, Nvidia has now surpassed Google’s parent company alphabet in terms of market capitalization, signifying the American chipmaker’s meteoric ascent in the market which shows no signs of slowing down.
Bloomberg reports that Nvidia’s shares surged by 2.5% on Wednesday pushing its market capitalization to an impressive approximately $1.83 trillion, edging out Alphabet’s valuation of nearly $1.82 trillion. This feat makes Nvidia the fourth most valuable company in the world, right behind Microsoft, Apple, and Saudi Amarco. The next target on its horizon is Saudi Aramco, with a valuation close to $2 trillion.
Nvidia’s upward trajectory has been ongoing for almost a year amid the AI boom skyrocketing the demand for AI GPUs for Large Language Models (LLM), a large portion of which is provided by Nvidia. The company’s performance in 2024 has been nothing short of impressive either with its share price going up by 49% and hitting a remarkable market value of $602 billion.
While the financial performance of Nvidia’s biggest tech rivals has not been poor at all, it still pales when compared to Nvidia’s soaring numbers. Although rival companies have already shared their financial results with the public, Nvidia’s earnings are due to come out on February 21.
Susquehanna Investment Group analyst Christopher Rolland expects to see another strong report from Nvidia but also acknowledges that the bar has been raised. Similarly, experts at Wall Street are expecting to see even stronger demand for Nvidia’s H100 AI GPUs going forward. The AI expenditure from tech giants including Microsoft and Meta continues to surge, which is only towering Nvidia’s sales.
This month, no fewer than five brokerage firms have raised their price forecasts for Nvidia. On average, analysts have increased their revenue projections for 2024 by over 100% in the past year, as per Bloomberg’s aggregated data.
Amidst the surge in interest in AI, several tech stocks associated with the technology have seen gains. However, Nvidia stands out as one of the select companies that have reported substantial revenue growth attributable to AI advancements.
Nvidia has also recently unveiled a platform to allow companies to build their own AI chips, meaning even if Nvidia’s customers choose to build their own AI chip systems, it will continue to benefit Nvidia.
