The Rise of Nvidia: A New Market Leader in the Age of AI

by Annabelle Stephenson
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on 8 February 2024

Nvidia zbliża się do prześcignięcia Amazona w wartości rynkowej

Nvidia, a leading provider of artificial intelligence (AI) chips, is on the brink of surpassing Amazon in terms of market value for the first time in two decades. Currently, Nvidia is only 3 percent below Amazon’s valuation and less than 6 percent behind Alphabet, the parent company of Google, according to LSEG data.

In 2024, Nvidia’s stocks surged by 40 percent, driving its market capitalization to $1.715 trillion. This places Nvidia just slightly below Amazon, valued at $1.767 trillion, and slightly lower than the $1.812 trillion valuation of Alphabet.

After a positive report from Morgan Stanley, Nvidia’s shares rose by 1.8 percent to $694.48. Analyst Joseph Moore raised the target price for Nvidia to $750, citing the ongoing increase in demand for AI.

The significant growth in Nvidia’s value in 2023, tripling its worth, has propelled it to become the fifth most valuable company in the U.S. market. The company has greatly benefited from the race among technology firms integrating AI into their products and services. One of the key players investing billions of dollars in Nvidia’s graphics processors is Meta Platforms (META.O).

The demand for Nvidia’s AI software found in its processors remains high among programmers, resulting in long waiting times for access by cloud computing service providers. However, as indicated in the Morgan Stanley report, these waiting times are gradually decreasing.

This renaissance of Nvidia places it ahead of Amazon for the first time since 2002 when both companies were valued at less than $6 billion.

Recently, Microsoft surpassed Apple in January, becoming the most valuable company in the world. Among the most valuable public companies globally are giants such as the world’s largest Saudi Arabian oil company, Saudi Aramco, Alphabet, and Amazon.

Saudi Aramco boasts a market capitalization of $2 trillion, making it the third most valuable public company worldwide. However, the majority of the company’s shares are government-owned, and less than 2 percent are available for trading by investors, according to LSEG data.

FAQ:

1. How is Nvidia approaching surpassing Amazon in terms of market value?
Nvidia, a provider of AI chips, is closing in on surpassing Amazon in terms of market value for the first time in two decades. Currently, Nvidia is only 3 percent below Amazon’s valuation and less than 6 percent behind Alphabet, the owner of Google – as per LSEG data.

2. What was the increase in Nvidia’s stock value in 2024?
In 2024, Nvidia’s stocks surged by 40 percent, driving its market capitalization to $1.715 trillion. This places Nvidia just slightly below Amazon’s value and slightly lower than Alphabet’s valuation.

3. What were the implications of the Morgan Stanley report for Nvidia’s stocks?
Following a positive report from Morgan Stanley, Nvidia’s stocks rose by 1.8 percent to $694.48. Analyst Joseph Moore raised Nvidia’s target price to $750, citing the increasing demand for AI.

4. How does this renaissance position Nvidia ahead of Amazon for the first time since 2002?
This renaissance of Nvidia places it ahead of Amazon for the first time since 2002 when both companies were valued at less than $6 billion.

5. What are the other most valuable public companies worldwide?
Recently, Microsoft surpassed Apple, becoming the most valuable company in the world. Among the most valuable public companies globally are giants such as the world’s largest Saudi Arabian oil company, Saudi Aramco, Alphabet, and Amazon.

Definitions:

1. Alphabet – The parent company of Google and several other technology enterprises.
2. Market Capitalization – The total value of a publicly traded company’s shares.
3. AI Software – Software utilizing artificial intelligence.

Suggested related links:
– [Nvidia](https://www.nvidia.com)
– [Amazon](https://www.amazon.com)
– [Alphabet (Google)](https://www.alphabet.com)
– [Microsoft](https://www.microsoft.com)
– [Apple](https://www.apple.com)
– [Saudi Aramco](https://www.saudiaramco.com)

The source of the article is from the blog lisboatv.pt