NVIDIA Corporation (NASDAQ: NVDA) momentarily eclipsed Amazon (NASDAQ: AMZN) in market value, marking a significant milestone in its remarkable ascent over the past year driven by unprecedented demand for AI-focused chips.
Nvidia stock witnessed a slight increase of nearly 0.16%, culminating in a market valuation of around $1.78 trillion. In contrast, the shares of Amazon saw a decrease of 1.2%, resulting in a final valuation of $1.79 trillion. This momentary lead propelled the chipmaker to become the fourth most valuable US-listed company during regular trading on Monday, trailing only Alphabet’s (NASDAQ: GOOG) market capitalization of $1.84 trillion. Microsoft Corporation (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) maintain their positions with market values of $3.09 trillion and $2.89 trillion, respectively.
Peter Garnry of Saxo Bank stated that Amazon emerged as one of the victors in the recent earnings season, with the future of company prospects showing signs of improvement.
Garnry added,
“Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centers.”
Market Value Race: NVIDIA vs. Amazon vs. Alphabet
After maintaining a steady range in the latter half of 2023, Nvidia stock has seen a significant rise of nearly 50% in the new year. This surge reflects sustained demand for its chips, which are integral to data centers for executing complex computing tasks required by AI applications. The market value of Nvidia has increased by around $600 billion this year. This figure surpasses its gains from the last seven months of 2023.
Amazon, too, has commenced the year on a positive note. The shares of the e-commerce leader rose by 8% last week following the announcement of strong sales in the fourth quarter and a profitability forecast that beat estimates. This increase briefly elevated the market value of Amazon above the Alphabet.
NVIDIA Corporation (NASDAQ: NVDA) is positioned to be the final one to announce its earnings, scheduled for February 21.
NVIDIA (NASDAQ: NVDA) Stock Performance
NVDA stock rose 0.16% to close at $722.48 on Monday. The traders had exchanged hands with 61,102,685 (61.10 million) shares compared to the average daily trading volume of 43.42 million.
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