In a milestone achievement, Nvidia’s market capitalization exceeded Amazon’s for the first time on Tuesday, marking the rising prominence of AI technology companies.
Nvidia’s share price closed at $721.28, valuing the firm at $1.78 trillion. This surpassed Amazon’s market capitalization of $1.75 trillion, the first time Nvidia has been more valuable than Amazon since 2002.
Nvidia’s meteoric rise is fueled by booming demand for its AI chips used in advanced applications like ChatGPT and Copilot. These expensive server chips are indispensable for companies like Microsoft, OpenAI, and Meta running AI models. Nvidia’s stock has skyrocketed over 246% in the past year amid this demand.
Analysts remain bullish on Nvidia’s prospects as AI compute needs expand. Nvidia reports earnings on February 21st, with analysts forecasting 118% annual sales growth to $59.04 billion. Leading analysts at Goldman Sachs and Bank of America even see Nvidia shares reaching $800.
While Amazon performed well, with shares up 78% in the past year, its investor appeal has been eclipsed by appetite for AI leaders like Nvidia. This reshuffling among tech giants highlights Nvidia’s meteoric rise, driven by AI chip supremacy.
Nvidia’s new position atop Amazon underscores investor enthusiasm for AI and the semiconductor firms enabling its advancement. As AI transforms technology, Nvidia’s capabilities have propelled it to the head of the pack.