In a close race on Wall Street, Nvidia is on the brink of surpassing Alphabet to become the third most valuable company, as it ended Tuesday with a market capitalization that for the first time in two decades exceeded Amazon’s. Despite a slight dip of 0.17% in Nvidia’s shares, the AI chip giant’s market value reached $1.78 trillion, overshadowing Amazon’s $1.75 trillion after the e-commerce behemoth saw a 2.15% fall in its stock.
Alphabet, the parent company of Google, wasn’t spared from the downturn, witnessing a 1.62% decrease in its stock, which left its market cap at $1.81 trillion. Nvidia, a leading beneficiary in the rush to integrate AI into products and services, continues to see a high demand for its graphics processors, driving its market valuation upwards.
Amid this surge, Mizuho analysts have heightened their price target for Nvidia, boosting it from $625 to $825, in anticipation of the company’s quarterly results expected on February 21. The adjustment came as Nvidia’s stock hit $721.28 on Tuesday, reflecting investor optimism about its leading role in the AI market.
Nvidia, commanding about 80% of the high-end AI chip market, has seen its stock rise by 46% this year, following a more than threefold increase in 2023. This growth trajectory underscores the heightened interest and investment in AI technology, which has also propelled companies like Microsoft and Meta to record highs.
Contrastingly, Alphabet has sought to keep pace by integrating chatbot technology into its search engine and offering generative AI tools to its cloud customers. Despite these efforts, a less-than-stellar quarterly report in January saw Alphabet’s shares take a hit, although it still managed a 4% increase in its stock value in 2024.
Nvidia’s momentary edge over Amazon in market cap signals a significant shift in the tech landscape, reminiscent of the early 2000s when both companies were valued at under $6 billion. Today, Nvidia’s resurgence as a key player in AI technology not only reflects its own growth but also highlights the evolving priorities and investments in the tech sector.
As Microsoft leads the pack with a valuation over $3 trillion, followed by state-owned Saudi Aramco, the race among tech giants underscores the transformative impact of AI on market dynamics. With Apple reportedly lagging in the AI competition, the focus is squarely on how companies like Nvidia are shaping the future of technology and investment.
