Nvidia threatens Google parent Alphabet after overtaking Amazon in market cap

Nvidia was on track to overtake Alphabet as Wall Street’s third most valuable company on Tuesday as the dominant AI chipmaker ended the day with a market capitalization above Amazon for the first time in two decades.

Shares of Nvidia fell 0.17% after the online shopping and cloud computing heavyweight’s stock fell 2.15%, leaving its stock market value at $1.78 trillion, undercutting Amazon’s $1.75 trillion valuation.

Shares of Google owner Alphabet fell 1.62 percent, leaving its market capitalization at $1.81 trillion.

Nvidia has been one of the biggest beneficiaries of technology companies’ race to build AI into their products and services, with its graphics processors in short supply as Meta Platforms and other Big Tech companies buy billions of dollars worth of its components.

Mizuho raised its price target for Nvidia’s stock to $625 from $625 in a client note, ahead of the Santa Clara, Calif., company’s quarterly results on Feb. 21. The stock ended Tuesday at $721.28.

Lead times for Nvidia’s top-shelf H100 processor have fallen, “but overall demand is far outstripping supply,” wrote Mizuho analyst Vijay Rakesh, adding that there was “substantial demand” for Nvidia, Broadcom and Advanced Micro Devices. AI sees upside down.

Nvidia controls about 80% of the high-end AI chip market, a position that has driven its stock up 46% this year after more than tripling by 2023. Technology-related companies including Microsoft and Meta also reached record highs. AI optimistic.

Alphabet has added chatbot technology to its Google search engine while marketing generative AI tools to cloud users. Its stock hit an all-time high a day before its quarterly report on January 30 and failed to meet high investor expectations, sending its shares tumbling. Alphabet’s stock remains up 4% in 2024.

Nvidia’s market capitalization briefly overtook Amazon on Monday, but Amazon bounced back up by the end of the trading session.

The last time Nvidia was more valuable than Amazon was in 2002, when they were each worth less than $6 billion. By mid-2004, Nvidia’s stock market value had fallen below $2 billion as Alphabet listed its shares at $23 billion.

The early leader in the AI ​​race, Microsoft overtook Apple in January to become the world’s most valuable company, now valued at more than $3 trillion. According to LSEG, state oil giant Saudi Aramco is the third most valuable publicly listed company in the world.

Widely seen as a laggard in the AI ​​race, Apple’s stock is down 4% in 2024.

Saudi Aramco has a market capitalization of $2 trillion, although more than 90% of it is owned by the government of Saudi Arabia and less than 2% of its shares are available for trading by investors.

© Thomson Reuters 2024

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