Nvidia's market capitalization is now neck-and-neck with tech giants like Amazon and Meta. With its impressive stock price surge and focus on AI hardware, Nvidia has become the fifth most valuable company on the US stock market.
Nvidia
— despite being inn almost every computer — wasn’t a household name. It was primarily for their
graphics cards
powering high-end gaming PCs. However, in the last 15 months or so Nvidia has undergone a notable transformation, evolving into a major player in the booming field of
Artificial Intelligence
(
AI
).
Nvidia’s GPUs are used for
generative AI
and the power the large language models which support them.
Nvidia’s stock has gone through the roof increasing its market capitalisation value. So much so that it is now neck-and-neck with tech giants like
Amazon
and even threatening to surpass
in market capitalisation.
According to a report by South China Morning Post, which cites a Morgan Stanley analysis, Nvidia's stock has been on fire in 2024, soaring 40% already. This surge has pushed its market capitalization to a staggering US$1.715 trillion, placing it just a hair's breadth away from tech titans like Amazon and Alphabet. As of last week, Nvidia sits: 3% shy of Amazon's US$1.767 trillion valuation. Notably, this number is less than 6% behind Alphabet's US$1.812 trillion market cap.
This impressive climb makes Nvidia the fifth most valuable company on the US stock market, a remarkable feat after tripling its stock price in 2023.
Nvidia's AI push
Unlike its diversified counterparts, Nvidia focused its resources on developing specialised hardware specifically designed for AI workloads. Their GPUs (Graphics Processing Units), traditionally used for graphics rendering, proved to be surprisingly adept at handling the complex calculations essential for AI tasks like machine learning and deep learning.
Nvidia’s bet on GPUs that are used for AI has paid off handsomely. Nvidia's GPUs became the go-to choice for researchers, developers, and companies working on AI projects. From self-driving cars to language translation, Nvidia's hardware powered breakthroughs across various industries. This dominance in the AI hardware market translated into impressive financial growth, pushing Nvidia's market cap, rivalling tech giants like Amazon and Meta.
English (US) ·