San Francisco, CA – Nvidia, a leading chipmaker, has surpassed tech giants like Alphabet and Amazon to become the third-most valuable company in the U.S. This surge in market cap comes as a result of investor excitement over the company’s role in artificial intelligence. As of 11:00 a.m. EST Thursday, Nvidia boasts a market cap of $1.8 trillion, overtaking Alphabet and Amazon, which sit at $1.77 trillion and $1.75 trillion, respectively.
This remarkable climb in valuation positions Nvidia as a key player in the technology industry, with a significant impact on the market. The company’s shares have seen a 51% increase year to date, driven by the rising demand for its chips by artificial intelligence tool makers. Additionally, Nvidia is expected to experience a substantial revenue growth of 120% in fiscal 2024, with another 60% jump anticipated for the following year. Analysts have also revised their price targets for the company, indicating a positive outlook for its future performance.
Despite this impressive ascent, Nvidia still trails behind Microsoft, with a market cap of over $3 trillion, and Apple, valued at $2.81 trillion, in the ranking of the most valuable companies globally. Moreover, the state-owned Saudi Arabian oil company, Saudi Aramco, remains ahead of Nvidia with a market cap of $2.07 trillion.
Looking ahead, Nvidia’s continued success in the AI and semiconductor industries suggests that there may be further opportunities for growth. This performance is underscored by the company’s position as the top-performing component of the Nasdaq 100 Index, indicating its strong market influence. While shares were slightly lower on Thursday, down 1% in midmorning trading, the overall outlook for Nvidia remains positive and promising.