Nvidia is on the verge of surpassing Alphabet to become the third most valuable company on Wall Street, with its market capitalization exceeding Amazon’s for the first time in two decades. Despite a slight decrease in its share price, Nvidia’s market value reached $1.78 trillion, surpassing Amazon’s shares surge $1.75 trillion following a decline in the latter’s stock value. Meanwhile, Alphabet’s market capitalization stood at $1.81 trillion after a decrease in its stock price.
Nvidia’s success is attributed to its dominant position in the AI chip market, benefiting from the increasing integration of AI in tech products and services. The demand for the company’s graphics processors remains high, with lead times for its H100 processor decreasing but still unable to meet overall demand. Analysts are optimistic about Nvidia’s future, with Mizuho raising its price target for the company’s stock ahead of its quarterly results.
This year, Nvidia’s stock has surged by 46%, driven by its leading position in the high-end AI chip market. This growth reflects a broader trend in the tech sector, with companies like Microsoft and Meta also experiencing record highs due to optimism surrounding AI.
In contrast, Alphabet has been investing in AI technology, integrating chatbot technology into its Google search engine and offering generative AI tools to its cloud customers. While Alphabet’s stock recently reached an all-time high, its quarterly report failed to meet investors’ expectations, resulting in a decline in its share price.
Source: ViennaTimes