Nvidia outperforms Amazon in market capitalization amid AI boom
Date
2/13/2024 3:08:09 AM
(MENAFN) On Monday, Nvidia briefly surpassed e-commerce behemoth Amazon in terms of market value, propelled by the surge in the artificial intelligence sector, propelling the chipmaker to the fourth position among American companies by value. The remarkable ascent saw Nvidia's stock soaring to an unprecedented level of USD734.96, driving its market capitalization to USD1.82 trillion, edging slightly ahead of Amazon's USD1.81 trillion. This significant milestone placed Nvidia in close proximity to Alphabet, the parent company of Google, which holds a market value of USD1.87 trillion.
The last instance of Nvidia surpassing Amazon in market value dates back to 2002 when both companies were valued at less than USD6 billion each. However, the recent resurgence underscores Nvidia's meteoric rise in the technology landscape, particularly fueled by its prowess in the artificial intelligence domain.
Investor anticipation is palpable as Nvidia gears up to release its quarterly results on February 21, marking the conclusion of this season's earnings announcements for tech giants. The surge in Nvidia's stock, which has surged by 47 percent since the start of the year, positions it as the top performer among the companies listed on the Standard & Poor's 500 index.
The impressive quarterly performance and heightened expectations stem from Nvidia's pivotal role in supplying technology crucial for generative artificial intelligence applications, including chatbots and image creation. The chipmaker's strategic positioning and robust financial performance over the past year have solidified its status as a frontrunner in the rapidly evolving AI sector, further bolstering investor confidence in its growth trajectory.
As Nvidia continues to ride the wave of AI innovation and solidify its market dominance, its brief overtaking of Amazon in market value symbolizes a landmark moment in the tech industry, highlighting the company's remarkable journey and the transformative impact of artificial intelligence on the global economy.
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