Nvidia briefly overtook Amazon in market value on Monday, the latest milestone in a stunning rally over the past year fueled by soaring demand for its chips used in artificial intelligence (AI) computing.
Nvidia rose almost 0.2%, closing with a market value of about $1.78 trillion. While Amazon fell 1.2%, it ended with a closing valuation of $1.79 trillion. The chipmaker did surpass the e-commerce and cloud-computing company during the regular session, temporarily making it the fourth most valuable U.S.-listed company, sitting below Alphabet¡¯s $1.84 trillion market capitalization. Microsoft weighs in at $3.09 trillion and Apple at $2.89 trillion.
¡°Amazon was actually among the winners in the current earnings season as Amazon¡¯s outlook is improving,¡± said Saxo Bank¡¯s Peter Garnry. ¡°Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centers.¡±
After remaining range-bound in the second half of 2023, Nvidia¡¯s shares have been on a tear in the new year, rising nearly 50% amid signs that demand remains strong for its chips used in data centers for complex computing tasks required by AI applications. Nvidia has added about $600 billion in market value so far this year, more than it gained in the last seven months of 2023.
Of course, Amazon¡¯s year is off to a good start as well. The e-commerce giant¡¯s shares jumped 8% last week after reporting strong sales in the fourth quarter and giving a forecast for profitability that topped estimates. The rally briefly pushed Amazon¡¯s market value above Alphabet¡¯s.
Nvidia is the last of the tech giants to report earnings, which are due on Feb. 21.
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