Daisy Watts
Feb 13, 2024
In a surprising shift of investors' inclination towards artificial intelligence (AI) in modern-day technology, Nvidia has outshined the e-commerce giant, Amazon, in terms of market capitalisation.
As per industry experts, the significant uptick has been led by the mounting optimism around the graphics processing units (GPUs) powered by AI, making Nvidia the fourth most valuable US company.
According to data disclosed by LSEG, with the share value standing at $734.96, Nvidia was worth $1.82 trillion in market value, slightly above that of Amazon's $1.81 trillion.
Read more: Nvidia's monthly market value surges to record high in January
Not only has the chipmaker propelled beyond Amazon's market value, it's now worth only few billions less than Alphabet, Google's parent company, striding to catch up its $1.87 trillion market value, Reuters reported.
The chipmaker's outmatch in market value comes more than two decades after Nvidia surpassed Amazon for the first time in 2002, when both the companies were worth less than $6 billion.
Following Amazon's impressive holiday quarter sales last month, investors are eagerly anticipating Nvidia's quarterly results on Feb. 21, as it is the final megacap firm to report this earnings season.
There is a high level of anticipation for the report as shares have increased by 47% year-to-date, making it the top gainer among S&P 500 components. Nvidia's exceptional quarterly results and strong forecasts from a year ago positioned the chip designer as a leader in supplying technology companies with generative AI for applications such as chatbots and image creation.
The investment in strong AI demand has significantly boosted Nvidia's shares, making it the top performing stock among the "Magnificent Seven" with a 223% surge over the past 12 months.
