In a report published by Reuters that Nvidia (NVDA.O) briefly outpaced Amazon.com Inc (AMZN.O) in market capitalization on Monday, fueled by the enthusiasm surrounding artificial intelligence. This surge propelled the chipmaker to become the fourth most valuable U.S. company.
Reaching a record high of $734.96, Nvidia boasted a market value of $1.82 trillion, edging past the $1.81 trillion valuation of retail giant Amazon.com. The chipmaker trailed behind Google-owner Alphabet (GOOGL.O), which stood at $1.87 trillion in market capitalization, according to data from LSEG. The last time Nvidia surpassed Amazon in value was in 2002 when both companies were valued at under $6 billion.
Investors are now eagerly awaiting Nvidia's quarterly results on Feb. 21, following Amazon's robust holiday quarter sales figures released last month. Nvidia's shares have surged 47% year-to-date, marking it as the top gainer among S&P 500 components. A stellar performance in previous quarterly reports, coupled with strong forecasts, positioned Nvidia as a leading supplier for tech firms involved in generative AI projects such as chatbots and image creation.
The bullish outlook on AI demand has propelled Nvidia's shares, making it the top-performing stock among the "Magnificent Seven," with a remarkable 223% surge over the past 12 months. Meta Platforms (META.O) follows with a 163% rise.
The Reason
This recent development follows the company's big showing at CES where it showcased how it is integrating Artificial Intelligence into its systems. One of the first examples of this was Gen AI which is focused on changing how players interact with the games they play and how it will simultaneously enhance the creative process of developers. HNGN did a deeper dive into the announcements.
It would seem that the announcements made during the conference turned quite a few heads as NVIDIA's shares have continued to increase in value showing that many companies and investors see Artificial Intelligence as the future and even a standard for everyday life as LG and Volkswagen have also integrated Artificial Intelligence into their upcoming products as well. HNGN has covered both of those individual announcements as well. Reuters also reports that the company's value surged with a 223% increase with META in second place with a 163% increase. META has also announced that it plans to label images generated by Artificial intelligence.
