Nvidia is now the third-largest company in the U.S., worth more than Alphabet

Nvidia has surpassed Google-parent Alphabet's stock market capitalization, becoming the third largest U.S. company. This surge is attributed to strong demand for Nvidia's AI computing chips, which has seen the company's stock rise by 231% in the past year, bringing its market value to $1.812 trillion. The company, which also overtook Amazon earlier this month, is now the top performer among the S&P 500 components this year.

Wall Street predicts Nvidia's fourth-quarter profit to be $11.38 billion, a staggering increase of over 400% from the previous year. The company's revenue is also expected to triple to $20.37 billion. However, Nvidia's high trading multiple suggests that its earnings potential may already be priced into the stock, potentially limiting further growth.

Key takeaways

Nvidia has overtaken Google-parent Alphabet’s stock market capitalization to become the third biggest U.S. company.
The company's stock has increased by 231% in the past 12 months due to strong demand for its chips used in artificial intelligence computing.
Nvidia is expected to post $11.38 billion in fourth-quarter profit, a more than 400% increase from a year ago.
The company now trades 33.19 times its forward earnings estimates, which is above the industry median multiple of 27.35, indicating that the stock may have priced in its earnings potential.

Nvidia is now the third-largest company in the U.S., worth more than Alphabet

Key takeaways

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