AI optimism drives Nvidia stock past Amazon, market cap poised to overtake Alphabet soon too
Nvidia is poised to surpass Google's parent Alphabet as the third most valuable company on Wall Street, as per reports. The expectation comes after the Santa Clara-based artificial intelligence (AI) chipmaker's market capitalisation reached $1.78 trillion on February 13, eclipsing Amazon's $1.75 trillion for the first time in two decades. On February 13, Nvidia's shares slipped by 0.17 percent, closing at $1.78 trillion, while Amazon's stock declined by 2.15 percent, resulting in a market value of $1.75 trillion.
Google-owner Alphabet also saw a dip of 1.62 percent, with its market capitalisation settling at $1.81 trillion. The gap seems surmountable, especially as demand for Nvidia's AI chips remains high. Also Read | Nvidia overtakes Amazon in market value of $1.78 trillion The surge in Nvidia's stock is attributed to the insatiable demand for its accelerators powering AI tasks.
Nvidia has become a major player in the technology sector's push to integrate AI into products and services. The company's graphics processors are in high demand, and at present Nvidia controls around 80 percent of the high-end AI chip market. Big Tech players such as Meta Platforms are investing billions of dollars in Nvidia's products.
However, the heightened demand for its graphics processors has resulted in shortages of its components. Also Read | Lyft shares rocket 60% then level to 17% on margin correction, stock still up on positive forecasts Lead times for Nvidia's premium H100 processor have decreased, but the overall demand remains considerably higher than the available supply, according to Mizuho analyst Vijay Rakesh. Largely the company growth has come as Nvidia dominates around 80 percent of the high-end AI chip market, which has
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