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Nvidia Momentarily Surpasses Amazon In Market Capitalization Due To An AI Frenzy

Nvidia Momentarily Surpasses Amazon In Market Capitalization Due To An AI Frenzy
Nvidia momentarily overtook Inc. in market capitalization as the chipmaker surged to the fourth position in terms of value in the United States due to the excitement surrounding artificial intelligence.
According to LSEG statistics, Nvidia's market value peaked at $734.96, making it worth $1.82 trillion, slightly less than the $1.81 trillion of retail behemoth and a few billions less than Alphabet, the company that owns Google, at $1.87 trillion.
When they were both valued at less than $6 billion in 2002, Nvidia was the more valuable company than Amazon.
Investors will be watching Nvidia's quarterly results on February 21, the last of the megacap companies to report this earnings season, following the company's better-than-expected holiday quarter sales last month.
With shares up 47% year to date and ranking as the greatest gainer among S&P 500 components, expectations were high going into the report.
Nvidia's stellar predictions and impressive quarterly results from a year ago proved that the chip manufacturer was leading the way in providing to tech companies developing so-called generative AI, such as chatbots and image creation.
Nvidia's stock has soared 223% over the last 12 months, making it the highest performing stock among the so-called "Magnificent Seven" on to the company's strong AI demand forecast. Meta Platforms has increased by 163% to rank second.
In January, Microsoft surpassed Apple to secure the top place as the most valuable business globally, with Alphabet coming in third.

Christopher J. Mitchell

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