Nvidia Corp. has managed to surpass Amazon.com Inc. in market value, marking a significant milestone in its incredible recovery driven by the growing demand for its chips used in artificial intelligence computing.
Nvidia shares rose as much as 2.9% on Monday, reaching a market value of around $1.83 trillion, surpassing Amazon’s $1.80 trillion, according to data compiled by Bloomberg. The chipmaker now stands as the fourth most valuable publicly traded company in the United States, trailing behind Alphabet with a market capitalization of $1.85 trillion. Microsoft Corp. is on top with $3.11 trillion, closely followed by Apple with $2.9 trillion.
Despite trading within a range during the second half of 2023, Nvidia’s shares have experienced a significant increase in the new year, with a nearly 50% surge. This is due to signals that the demand for its chips used in data centers for artificial intelligence applications remains strong. Year-to-date, Nvidia has added approximately $600 billion in market value, surpassing what it gained in the last seven months of 2023.
Meanwhile, Amazon has also had a good start to the year. After reporting solid sales in the fourth quarter and surpassing estimates with its profitability forecast, the e-commerce giant’s shares rose 8% last week. This briefly brought Amazon’s market value above that of Alphabet.
In conclusion, Nvidia has demonstrated an impressive rebound in its market value, surpassing Amazon driven by the growing demand for its chips for artificial intelligence. As both companies continue to show strong performance in the market, it will be interesting to watch their progress in the coming months.