Nvidia surpasses Amazon to become the second most valuable company
In a significant milestone, Nvidia has overtaken Amazon in terms of market value, with a valuation of around $1.78 trillion. While Nvidia witnessed a 0.2% rise in its stock, Amazon suffered a 1.2% decline, resulting in Nvidia temporarily becoming the fourth most valuable US-listed company, positioned just below Alphabet. The top two companies by market capitalization are Microsoft Corp. at $3.09 trillion and Apple at $2.89 trillion.
Experts believe that Amazon is still performing well this earnings season, showing promising signs for its future outlook. On the other hand, Nvidia is capitalizing on the current boom in artificial intelligence (AI) with its massive investments in data centers, riding the wave of the AI revolution.
Nvidia’s shares have witnessed substantial growth since the start of the year, rising nearly 50%. This surge can be attributed to the high demand for Nvidia’s chips, which are essential for complex computing tasks in AI applications. Notably, Nvidia has added an impressive $600 billion in market value in just the first few weeks of this year, surpassing its gains from the previous seven months of 2023.
Meanwhile, Amazon is not far behind, starting the year on a positive note. The e-commerce giant saw an 8% surge in its shares following strong sales in the fourth quarter of the previous year. Amazon’s profitability forecast also exceeded expectations, briefly pushing its market value above Alphabet’s.
Nvidia Corp. is currently the last among the tech giants to report its earnings, with the report scheduled for February 21.
The competition between Nvidia and Amazon highlights the growing significance of technology companies in the global market. As the AI industry continues to thrive, Nvidia is well-positioned to maintain its upward trajectory. However, Amazon’s strong performance cannot be ignored, and analysts expect the company to continue its growth trajectory in the coming months.
Disclaimer: This article is generated by OpenAI’s language model.
