About Nvidia's Overtaking of Amazon in Market Value and the Growing Interest in Artificial Intelligence

In a surprising turn of events, chipmaker Nvidia (NVDA) has surpassed retail giant and cloud infrastructure provider Amazon (AMZN) in terms of market value, highlighting the increasing fascination with artificial intelligence. While the two companies have frequently traded places, this is the first instance where Nvidia has maintained a higher market value than Amazon for a full trading day.

After the closing of the U.S. markets on Tuesday, Nvidia’s market value stood at $1.78 trillion, with an average daily exchange of $47.85 million over the past month. On the other hand, Amazon closed at a value of $1.75 trillion, with a daily trade of $49.75 million.

Although both tech giants experienced a decline in their stock prices at the end of the day, with Amazon dropping 3.7% to $168.64 and Nvidia falling 1.2% to $721.28, they are currently riding high on their success.

Amazon has long been recognized as one of the top American tech giants and was previously part of the “FAANG” group, consisting of Facebook, Apple, Netflix, and Google. However, as companies have evolved and changed their names, the acronym has now transformed into “MAMAA.” In the meantime, Nvidia has quickly caught up, with its outstanding growth last year earning it the title of “Company of the Year for 2023” by Decrypt.

Nvidia’s market value surpassed that of all cryptocurrencies in the past, and its stock has seen a 45% increase this year. Other companies involved in producing AI chips have also witnessed significant growth. Last week, the head of AWS at Amazon remarked that AI-based companies are currently “overhyped,” drawing a comparison to the dot-com bubble in the early 2000s. However, their financial results speak for themselves, reflecting substantial profits derived from investments in artificial intelligence. The company’s quarterly outcomes demonstrate a noteworthy number of clients and projects utilizing this technology.

If this trend continues, Nvidia may have its sights set on catching up to Google, which currently holds the third position with a market value of $1.81 trillion.