Thanks to the artificial intelligence boom, chipmaker Nvidia has surpassed Amazon and Alphabet, Google’s parent company, in market capitalization.
Theo Forbes, Nvidia’s market value surpassed “giants” like Amazon and Alphabet earlier this week. This is considered an unbelievable victory, but it happened thanks to Nvidia shares increasing more than 4 times in the past 15 months. Investors believe in the chip maker’s leading position in the artificial intelligence (AI) race.
Specifically, Nvidia shares increased nearly 3% to an all-time high of more than 740 USD, increasing capitalization to 1.83 trillion USD, surpassing Alphabet’s capitalization of 1.82 trillion USD and 1.8 trillion USD. trillion USD of Amazon. It marks Nvidia’s impressive journey as Wall Street rushed to buy shares amid the AI fever.
Nvidia CEO Jensen Huang (leather jacket) and Amazon Web Services CEO Adam Selipsky at the annual AWS re:Invent 2023 event. (Photo: Amazon)
In October 2022, Nvidia’s capitalization was less than 300 billion USD, right before the AI wave began to peak, far behind the 1 trillion USD mark of Amazon and Alphabet at that time. With impressive acceleration, Nvidia is now the fourth largest public company with capitalization in the world, after Microsoft (3.1 trillion USD), Apple (2.9 trillion USD), Saudi Aramco (2 trillion USD). ).
Nvidia is by far the most prominent maker of AI semiconductor chip technology, not only because of Nvidia’s potential to capitalize on growing interest and enterprise spending in AI, but also because of the resulting boom. company explosion. Nvidia’s earnings before interest, taxes, depreciation and amortization (EBITDA) grew more than 500% last quarter compared to the same period in 2022 thanks to rapid growth in its AI division. Meanwhile, Amazon and Alphabet recorded a 20% increase in earnings.
Nvidia’s total revenue and profits are less eye-catching than those of other trillion-dollar companies, but analysts hope the semiconductor company will soon close the gap. Nvidia recorded a profit of 9.2 billion USD, while Apple and Microsoft reached more than 22 billion USD.
Nvidia remains one of the hottest stocks on Wall Street even after rising more than 50% this year and is the top pick for analysts at both Goldman Sachs and Bank of America. Each bank has an $800 price target on Nvidia, representing an 8% upside for the stock.
Nvidia will announce its fourth quarter 2023 business results next week. Analysts predict the company will have another quarter of record sales and profits.
(Theo Forbes)