Nvidia is growing and could be worth as much as Amazon or Google in the coming days. Its stock price is now close to that of the e-commerce giant, at more than $1,700 billion.
After two decades of watching the spectacle from afar, not only is Nvidia now taking part, but the global chip heavyweight intends to be a major player. On Wednesday evening, the market capitalization of the American company ($1,731 billion) flirted more than ever with that of Amazon ($1,771 billion). Even Alphabet, the parent company of Google (1,815 billion), is in Nvidia’s sights. The company is in demand from all sides, particularly for its capabilities in artificial intelligence.
Nvidia’s wildly upward race
Behind Microsoft, Apple, the Saudi Arabian oil company and Alphabet, Nvidia, already the fifth most valuable company in the United States, is sinking into Amazon and the top 5 worldwide. The Santa Clara company has seen its stock triple in just a year, going from $220 to more than $700 today, with a valuation of $1.731 billion.
Nvidia bet on the right horse. The company is at the head of the beneficiaries of the integration of artificial intelligence by technological giants, whose stock market value it competes with, or even exceeds. If we take the example of Meta (Facebook’s parent company), valued at $1,197 billion, the latter invests astronomical sums in Nvidia graphics processors.
AI developers today face considerable wait times to access company processors, although analysts at Morgan Stanley bank tend to say that these delays are gradually decreasing.
For Nvidia, a golden future almost assured
The last time Nvidia surpassed Amazon in market valuation was in 2002, a time that anyone under the age of twenty literally cannot know. Both were worth no more than $6 billion each. The companies are not holding grudges at all, since they are working together on building the fastest GPU-powered artificial intelligence supercomputer on the planet, as we revealed to you during the last AWS re:Invent event last November.
With Microsoft leading the global stock market, overtaking Apple since January, Nvidia is positioned among the most powerful companies in the world. Although Saudi Aramco holds third place with a capitalization of $2 trillion, its limited availability to investors highlights the dominance of tech players.
The breakthrough of the chip giant in any case marks a turning point and gives it an eminent status in the sector of new technologies, with a key role in the revolution caused by artificial intelligence. Suffice it to say that this is only the beginning for the company run by the man in the leather jacket, Jensen Huang.
Source : Reuters
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