Nvidia's soaring value nears Amazon amid AI frenzy: Report
A view of a Nvidia logo at their headquarters in Taipei, Taiwan
With a 40 per cent surge in 2024, Nvidia's market capitalisation stands at $1.715 trillion, just 3 per cent short of Amazon's $1.767 trillion.
Additionally, it is trailing closely behind Alphabet, Google's parent company, which boasts a $1.812 trillion valuation.
The soaring trajectory of Nvidia's shares, rising 1.8 per cent to $694.48 after an optimistic report from Morgan Stanley, positions the AI giant as a formidable player in the market.
Morgan Stanley's recent report has contributed to the positive sentiment surrounding Nvidia.
Analyst Joseph Moore, in a client note, emphasised the surging demand for AI, prompting the firm to raise Nvidia's price target from $603 to $750.
Nvidia, having tripled its stock value in 2023, now holds the fifth position among the most valuable companies in the US stock market.
The company is gearing up to report its quarterly results on February 21, maintaining the spotlight on its robust performance.
Nvidia's prominence in the AI landscape has been propelled by tech giants like Meta Platforms and others integrating its graphics processors into their products and services.
The company has emerged as a top beneficiary in the race to infuse AI capabilities across various industries.
Cloud-computing providers offering Nvidia's processors are witnessing high demand, leading to months-long waiting lists for AI developers.
Morgan Stanley's Moore pointed out that while these wait times are gradually decreasing, the sustained demand underscores Nvidia's pivotal role in the AI ecosystem.
This impending milestone for Nvidia marks the first time in two decades that it is on the verge of surpassing Amazon in market value.
The last instance was in 2002 when both companies were valued under $6 billion.
Microsoft's recent achievement in becoming the world's most valuable company, surpassing Apple, adds to the dynamic landscape of tech leaders vying for the top spots.
While Nvidia's surge in market value is noteworthy, Saudi Aramco remains the world's third most valuable publicly listed company, with a market capitalisation of $2 trillion.
However, it's essential to note that over 90 per cent of Saudi Aramco is closely held by the Saudi Arabian government, and less than 2 per cent of its shares are available for trading by investors.
(With inputs from Reuters)