On Monday, February 12, Nvidia Corporation momentarily surpassed Amazon.com Inc. in market value—the most recent achievement in an incredible run over the previous year driven by skyrocketing demand for its processors used in artificial intelligence (AI) computing.
With a nearly 0.2 percent increase, Nvidia's market value ended the day at $1.78 trillion. Despite a 1.2% decline, Amazon's closing valuation was $1.79 trillion. During the normal session, the chipmaker did manage to overtake the cloud computing and e-commerce company, briefly placing itself as the fourth most valuable US-listed corporation, trailing Alphabet's $1.84 trillion market capitalization. Apple is valued at $2.89 trillion, whereas Microsoft Corporation is valued at $3.09 trillion.
Given its improving outlook, Amazon was actually one of the winners of the recent earnings season. Peter Garnry of Saxo Bank stated that Nvidia is only at the beginning of the current AI boom's investment wave, having already invested a significant amount of resources in data centers.
Following a range-bound second half of 2023, Nvidia's shares have surged about 50% in the new year on indications that demand for its chips, which are used in data centers for sophisticated computing jobs needed for artificial intelligence applications, is still high. This year, Nvidia has increased its market worth by around $600 billion, surpassing the amount it acquired in the final seven months of 2023.
Naturally, Amazon is also off to a strong start this year. The e-commerce behemoth's stock increased by 8% last week on the release of robust fourth-quarter sales data and an above-estimate profitability prediction. For a little while, the surge raised Amazon's market value above Alphabet's. The final major tech company to release its earnings is Nvidia Corporation; they are scheduled for release on February 21.
