Nvidia has now passed Alphabet (parent company of Google) in the list of the world’s most valuable companies.
The news comes just days after the California chipmaker passed Amazon, and makes it now the third-most valuable company in the US, and the fourth in the whole world.
On February 14, Nvidia’s stock rose over 2%, closing at an impressive $739 per share, pushing its market value to $1.83 trillion, edging past Google’s $1.82 trillion market cap.
Nvidia is on its way to the top
Two symbolic milestones within days of each other highlight Nvidia’s role as a key player in the artificial intelligence landscape, outpacing even some major software companies and cloud providers that incorporate AI technology into their products. Google and Amazon have also been working on their own AI-capable components, but Nvidia looks to be undisturbed.
Over the past year, Nvidia’s shares have risen by a staggering 225%, driven mostly by soaring demand for its high-end AI server chips. In other words, a lot more than the 52% growth seen by Google and the 70% growth seen by Amazon. Microsoft shares are up 140% in a year.
Previously best known for its consumer graphics processors catering to gaming PCs, Nvidia’s decision to pivot towards AI has proven to be an incredibly lucrative move.
Nvidia is set to report its quarterly earnings on February 21, when analysts expect to hear about a 118% growth in sales, to the tune of $59.04 billion.
The next US company in its sights to overtake is Apple, which currently has a market value of $1 trillion more than Nvidia, so while it could be several years before that happens, its impressive growth rates in recent months have at least given the chipmaker the fuel to reach for the top.
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