Nvidia Corp., after surpassing Amazon.com Inc. in valuation, is poised to overtake Alphabet Inc. as well. In Wednesday's morning trading, Nvidia's stock rose by 2.3%, putting it on track to conclude the day with a market value of $1.82 trillion. Meanwhile, Alphabet's stock increased by only 0.2%, and it was projected to finish the day with a valuation of $1.81 trillion.
This intraday movement positions Nvidia as the third-largest U.S. company by market capitalization, trailing behind Microsoft Corp. ($3.02 trillion) and Apple Inc. ($2.84 trillion). The achievement of surpassing Amazon's valuation on Tuesday marked the first time Nvidia reached this milestone since April 18, 2022, according to Dow Jones Market Data.
If Nvidia manages to conclude the trading day ahead of Alphabet, it would be a historic feat for the chip maker. Nvidia's market cap ranking has witnessed a remarkable ascent, considering it was the seventh-largest company by market cap one and two years ago, and the twelfth largest three years ago. Just four years ago, Nvidia was positioned outside the top 20.
Nvidia's impressive climb up the list of the largest U.S. businesses is attributed to the soaring demand for its graphics-processing units, crucial components in driving the artificial-intelligence boom. The stock has surged by 222% over the past 12 months.
On a challenging day for the broader market on Tuesday, Nvidia experienced only a marginal decline. This resilience in the face of market fluctuations led Mizuho desk-based analyst Jordan Klein to observe that the trend of capital expenditures and buildouts in artificial intelligence is thriving. This trend is contributing to the fear of missing out (FOMO) in certain segments of the market.
The significance of Nvidia's performance is underscored by the anticipation surrounding its upcoming earnings report on Feb. 21. Investors are keenly watching the company's financial results, given its pivotal role in the AI sector and the broader technology landscape.
As a leading independent research provider, TradeAlgo keeps you connected from anywhere.