With $1.78T valuation, NVIDIA surpasses Amazon's market capitalization
NVIDIA briefly surpassed Amazon in market value, reaching a whopping $1.78 trillion, on Monday (February 12). The milestone was fueled by skyrocketing demand for NVIDIA's AI computing chips. NVIDIA's shares increased by 0.2%, while e-commerce giant Amazon's shares recovered from their day's lows, resulting in a closing valuation of $1.79 trillion. But for a short time, NVIDIA held the title of the fourth most valuable United States-listed company, just below Alphabet ($1.84 trillion), Apple ($2.89 trillion), and Microsoft ($3.09 trillion).
Factors behind NVIDIA's market value surge
Since the start of the year, NVIDIA's shares have soared by almost 50%, adding a staggering $600 billion to its market value. This impressive growth is largely due to the high demand for the company's chips, which are used in data centers for complex artificial intelligence (AI) computing tasks. Peter Garnry of Saxo Bank commented, "NVIDIA is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centers."
Amazon's performance and upcoming NVIDIA earnings report
Amazon has also had a strong start to the year, with its shares leaping 8% last week following robust Q4 sales and a profitability forecast that exceeded expectations. The surge briefly pushed Amazon's market value above that of Alphabet, too. Analysts await NVIDIA Corporation's earnings report on February 21, which could further influence its market value and standing among tech giants.