In a significant market development, Nvidia has eclipsed Google’s parent company, Alphabet, in market capitalization, marking another triumph for the chipmaker in the era of AI expansion.
Nvidia’s ascent was highlighted by a more than 2% increase in its stock, closing at $739.00 per share, ultimately reaching a market value of $1.83 trillion. This milestone follows closely on the heels of Nvidia surpassing Amazon in market value just the day before. The shift underscores Nvidia’s status as a Wall Street favorite, propelled by robust sales of AI server chips, which have witnessed an astounding 221% surge in the past 12 months.
The remarkable surge in Nvidia’s market cap reflects the elevated valuation accorded to the chipmaker, surpassing even some major players in software and cloud services that extensively incorporate AI technology. Previously renowned for consumer graphics processors catering to gaming computers, Nvidia’s strategic pivot towards high-demand AI server chips has proven financially lucrative.
Meanwhile, Google, considered a stalwart in the AI realm, has seen its market value rise by 55% in the past year, albeit facing challenges such as layoffs and cultural issues despite being at the forefront of AI techniques, including contributions to cutting-edge models like ChatGPT, Google grapples with internal adjustments after declaring a “code red” situation to embed AI services into its products. The company recently introduced Gemini Advanced, a $20 annual AI subscription, marking a foray into paid generative AI products.
Nvidia’s newfound status places it as the third-largest U.S. company, trailing only behind Apple and Microsoft. As the chipmaker gears up to report quarterly earnings on Feb. 21, analysts anticipate an impressive 118% annual growth in sales, projecting a figure of $59.04 billion.
The ongoing AI boom continues to shape the landscape, with Nvidia solidifying its position as a critical player in this transformative era.
