In a significant milestone, Nvidia has surpassed Amazon in market value and now has its sights set on another target. The chipmaker’s stock saw a surge during Tuesday’s trading session, pushing its market capitalization to $1.78 trillion by the close of business. This places Nvidia ahead of Amazon, which experienced a more than 2% decline in its stock price throughout the day.
Nvidia’s rise to prominence is largely attributed to its pivotal role in the artificial intelligence (AI) sector. The company’s cutting-edge chips are instrumental in powering various AI applications, including chatbots and other innovative products. This marks a significant shift from 2002 when both Nvidia and Amazon were valued at less than $6 billion, highlighting Nvidia’s remarkable growth trajectory over the years.
The latest surge in Nvidia’s market value propels it to the position of the fourth-most valuable company on Wall Street, trailing closely behind Alphabet, the parent company of Google. With just a few billion dollars shy of Alphabet’s market capitalization, Nvidia stands on the cusp of overtaking the tech giant. If successful, Nvidia would join the ranks of Microsoft and Apple as one of the most valuable companies globally, with both tech giants commanding market values of around $3 trillion.
Microsoft’s recent ascent to the top spot in terms of market value was fueled by its strategic partnership with OpenAI, the organization behind ChatGPT, an advanced language model. Meanwhile, Apple slipped to the second position amid concerns regarding its pace of innovation compared to its rivals.
On the global stage, Nvidia remains in close competition with Saudi Arabia’s oil titan Aramco, which boasts a market value of approximately $2 trillion. Beyond Aramco, Nvidia stands as one of the most valuable companies worldwide, signaling its growing influence and dominance in the technology sector. As Nvidia continues to push the boundaries of innovation in AI and other emerging technologies, its trajectory toward becoming one of the world’s most valuable companies seems increasingly inevitable.
