Nvidia is Now Worth More Than Alphabet, One Day After Surpassing Amazon
Nvidia, a leading figure in artificial intelligence technology, has reached yet another milestone on Wall Street, surpassing Alphabet in market capitalization just one day after overtaking Amazon.
The market capitalization of Nvidia soared to $1.83 trillion on Wednesday, edging past Alphabet’s $1.82 trillion valuation. Nvidia’s shares climbed 2.5% to $739 each, while Alphabet’s shares closed the session at $145.94.
This achievement comes hot on the heels of Nvidia’s recent leapfrogging of Amazon in market value, marking the first time since 2002 that Nvidia had a higher market cap than the e-commerce giant.
Nvidia’s shares have been on an impressive upward trajectory since 2023, fueled by investor enthusiasm for artificial intelligence technologies. The surge in Big Tech stocks, driven by AI hype, has propelled the S&P 500 index to a 24% jump last year.
Among the tech giants leading this bull market, Nvidia stands out as a primary beneficiary of the AI frenzy. The stock has surged 49% this year, building upon a remarkable 239% gain in 2023.
While Nvidia and its peers in the “Magnificent Seven” tech stocks continue to ascend, some investors remain cautious about sustaining such rapid growth.
Dave Sekera, chief US market strategist at Morningstar, cautioned investors about Nvidia’s valuation, emphasizing the dependency on maintaining its current growth trajectory.
Nvidia’s CEO, Jensen Huang, underscored the importance of democratizing AI technology and providing access to digital intelligence worldwide.
Speaking at the World Government Summit in Dubai, Huang emphasized the global movement toward sovereign AI and the necessity for regions to safeguard their data while fostering digital intelligence locally.
As Nvidia solidifies its position as a powerhouse in the AI landscape, its market performance continues to captivate investors and industry observers alike.
