Nvidia Corp. on Monday, February 12, overtook Amazon.com Inc. in terms of the indicator of the company’s market value.
Currently, the firm, headed by Jensen Huang, is in a state of rapid growth. Nvidia’s impressive dynamic is due to the so-called artificial intelligence boom. The company supplies to advanced technologies market new-generation chips, which are necessary for the training and subsequent operation of machine intelligence systems. Currently, there is a steady increase in consumer demand for Nvidia microcircuits. The company has become one of the main beneficiaries of the global artificial intelligence development process. This trend is expected to continue.
Nvidia shares rose 2.9% on Monday. Against this background, the company’s market value reached about 1.83 trillion dollars. At the same time, Amazon’s market value is $1.80 trillion.
The chip maker, led by Jensen Huang, is the fourth most valuable listed company in the United States. Microsoft Corp. is estimated at $3.11 trillion. Apple’s market value is currently at $2.9 trillion. Alphabet’s market capitalization is $1.85 trillion.
Peter Garnry of Saxo Bank says that Amazon is actually one of the winners of the current season in terms of revenue. The expert noted that the prospects of this e-commerce giant, which owns the best American delivery service, are improving.
Nvidia, according to Peter Garnry, is currently just experiencing the first investment wave of the boom in the artificial intelligence industry with massive capital expenditures on the deployment of data centers.
In the second half of last year, Nvidia’s share price was at a low level. In 2024, the company’s securities rose in price by almost 50%. The corresponding positive dynamic is observed against the background of signs that the demand for the company’s chips, used, among other things, in data centers for complex computing tasks related to the functioning of artificial intelligence apps, remains high. Since the beginning of the current year, Nvidia’s market value has increased by about $600 billion. This intensity of positive dynamic exceeds the growth rate of the mentioned indicator over the last seven months of 2023.
For Amazon, the beginning of the current was also a favorable period. Last week, the share price of the e-commerce giant showed an increase of 8%. This dynamic was recorded after the company reported high sales in the fourth quarter of last year and published a positive profit forecast. The rally temporarily boosted Amazon’s market value above that of Alphabet.
Nvidia will report earnings on February 21st. The company will be the last of the tech giants to publish relevant information.
Morgan Stanley raised the target price of chip maker securities to $750 from $603. Analyst Joseph Moore said in a note to clients that demand for artificial intelligence continues to show an upward trend.
The last time Nvidia was more valuable than Amazon was in 2002. At that time, the market value of each of the companies was more than $6 billion.