The American chipmaker Nvidia, specializing in semiconductor manufacturing, briefly surpassed Amazon in market capitalization on Monday, driven by hopes in artificial intelligence (AI) technology, making it the fourth-largest U.S. company by market value, according to Reuters.
The chipmaker’s stock reached a record high of $734.96, pushing its market capitalization to $1.82 trillion, compared to Amazon’s $1.81 trillion. Nvidia lagged behind Google’s parent company Alphabet by a few billion, with its market value reaching $1.87 trillion, according to data from LSE AG.
The last time Nvidia’s value exceeded Amazon’s was in 2002 when both were valued at less than $6 billion each.
Following Amazon’s higher-than-expected quarterly sales last month, investors are eagerly awaiting Nvidia’s quarterly results on February 21st, marking the final giant tech company to report earnings.
Expectations have risen as the earnings report approaches, with shares rising by 47% since the beginning of the year, making it the top performer among S&P 500 companies.
Nvidia’s impressive quarterly results and strong forecasts from a year ago confirmed the chip designer’s leading position in supplying technology companies working on so-called generative AI, such as chatbots and image creation.
The company’s bet on strong demand for AI has propelled Nvidia’s stock, making it the top-performing stock among the so-called “Magnificent Seven,” with a 223% increase over the past 12 months. Meta followed in second place with a 163% increase.
Microsoft surpassed Apple in January to become the world’s most valuable company, thanks to its focus on integrating AI into its products, with Alphabet securing the third position.
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