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AI Giant NVIDIA Outranks Amazon as 4th Largest US Company

source-logo  coingape.com  + 1 more 12 February 2024 22:03, UTC

Based on the current outlook of the stock market, leading Artificial Intelligence (AI) firm NVIDIA Corp. has subtly outranked e-commerce company Amazon.com Inc.

NVIDIA Hits $1.83T in Market Capitalization

NVIDIA has hit a milestone with its recent 2.9% rise to a market value of about $1.83 trillion. With this value, the AI giant is now stretching over Amazon by 30 billion as the latter currently has a market value of $1.80 trillion. NVIDIA now ranks as the fourth most valuable United States-listed company.

Markedly, the company is superseded by Alphabet at a $1.85 trillion market capitalization, Microsoft Corp. at $3.11 trillion and Apple at $2.9 trillion. Saxo Bank’s Head of Equity Strategy Peter Garnry celebrated Amazon as one of the winners this season, citing that the firm is gradually improving. He believes that NVIDIA is only riding on the wave of the AI boom.

“Amazon was actually among the winners in the current earnings season as Amazon’s outlook is improving. Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centers,” Garnry shared his opinion.

The Saxo Bank staff may not be far from the truth as AI has recently had a massive boost that has pushed the burgeoning ecosystem into profit. Precisely, NVIDIA has been delving into new regions, courtesy of its AI chip technology used in data centers for the completion of complex computing tasks required by AI applications.

Ripple Effect of the AI Boom

About a month ago, Coingape reported that Chinese military entities, state-owned artificial intelligence research centers, and universities had purchased batches of Nvidia semiconductors. Achievements like this have contributed to the more than 50% rise in NVIDIA shares and consequently the surge in market value.

The AI boom wave is also impacting other firms like Sam Altman’s OpenAI and even Microsoft. Days ago, OpenAI’s revenue reportedly surpassed $2 billion, a result hinged on the success of the company’s flagship AI product ChatGPT. The firm is already looking to double this figure by next year.

Similarly, Microsoft surpassed a $3 trillion valuation, fueled by the company’s strategic focus on AI. The tech company joined the elite club as the second company after Apple to ever hit this milestone.

These milestones are an indication that AI is revolutionizing the market with firms like Nvidia taking the lead

coingape.com

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