Nvidia Briefly Overtakes Amazon in Market Value amid AI Chip Demand
Nvidia Corporation temporarily surpassed Amazon.com Inc. in market value, marking a milestone in its remarkable rally over the past year driven by soaring demand for its chips used in artificial intelligence (AI) computing.
Nvidia's market value closed at about $1.78 trillion after a nearly 0.2 percent rise, while Amazon experienced a 1.2 percent decline, closing with a valuation of $1.79 trillion. Nvidia briefly claimed the position as the fourth most valuable US-listed company during the regular session, sitting below Alphabet with a $1.84 trillion market capitalization. Microsoft is at $3.09 trillion, and Apple at $2.89 trillion.
Saxo Bank’s Peter Garnry noted, “Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centres". Nvidia's shares, after remaining range-bound in the second half of 2023, surged nearly 50 percent in the new year, driven by strong demand for its chips in data centers for complex computing tasks required by AI applications. The company has gained about $600 billion in market value so far in 2024, surpassing its growth in the last seven months of 2023.
While Amazon reported strong sales in the fourth quarter, leading to an 8 percent jump in its shares, Nvidia's surge briefly pushed its market value above Alphabet's. Nvidia is the last of the tech giants to report earnings, with results scheduled for February 21.
