Nvidia surpasses Amazon in market value, becomes 4th most valuable US firm

2/15/2024 4:31:37 AM

(MENAFN) Nvidia has ascended to become the fourth most valuable publicly traded company in the US, surpassing Amazon in market value due to robust demand for artificial intelligence (AI).

Despite a slight 0.17 percent decline in Nvidia's stock price on Tuesday, the US-based global chipmaker's market capitalization reached USD1.78 trillion, exceeding Amazon's USD1.75 trillion market value as Amazon shares dropped by 2.15 percent.

Nvidia's stock price surged by 17.2 percent since the start of February, reaching USD721.28 per share on Tuesday from USD615.27 at the end of January. This remarkable rally follows Nvidia's tripling of revenue to a record high in the third quarter, driven by increasing demand for its hardware essential for AI tasks.

According to a financial results statement released on Nov. 21, Nvidia reported a revenue of USD18.12 billion for the quarter ending Oct. 29, marking a 206 percent increase compared to the same period last year and a 34 percent rise from the preceding quarter.

Earlier, on Jan. 26, Microsoft reclaimed a market value exceeding USD3 trillion, surpassing Apple as the US' most valuable public company by market capitalization. Apple currently holds the second position with a market cap of USD2.86 trillion, followed by Google's parent Alphabet with USD1.81 trillion.

Nvidia's shares, which surged nearly 11 percent during pre-market trading on the Nasdaq, are poised to potentially overtake Alphabet's market cap on Wednesday.

Although Saudi Aramco, the state-owned oil company of Saudi Arabia, boasts a market cap surpassing USD7.7 trillion on Wednesday, it is not listed on an international exchange, with its shares solely traded on the Saudi stock exchange, Tadawul.

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