Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Nvidia is now worth more than Amazon thanks to the AI chip boom

Feb 13, 2024 - cnbc.com
Nvidia has surpassed Amazon in market capitalization, closing at $721.28 per share and reaching a market value of $1.78 trillion, compared to Amazon's $1.75 trillion. This is the first time since 2002 that Nvidia has been worth more than Amazon after the market close. The surge in Nvidia's value is attributed to the strong demand for semiconductors that power advanced AI and the investor interest in companies that manufacture these chips. Nvidia's shares have risen over 246% in the past year due to robust demand for its server AI chips, which are used by companies like Microsoft, OpenAI, and Meta.

Despite this, Amazon is not lagging behind, with its shares increasing by about 78% in the past 12 months. The company reported better-than-expected quarterly earnings on February 1, showing that it has successfully controlled expenses after laying off 27,000 employees. This development indicates a continuous reshuffling among the world's most valuable companies. For instance, Microsoft surpassed Apple in January to become the most valuable U.S. company by market capitalization, largely due to its cloud partnership with OpenAI and new AI features in Windows and Office.

Key takeaways:

  • Nvidia surpassed Amazon in market capitalization, closing at $721.28 per share and reaching a market value of $1.78 trillion.
  • This surge in Nvidia's value is largely due to robust demand for its server AI chips, with shares up over 246% in the last 12 months.
  • Despite Nvidia's growth, Amazon is also performing well, with shares up about 78% in the past 12 months after better-than-expected quarterly earnings.
  • Nvidia is expected to report 118% annual growth in sales to $59.04 billion in its upcoming quarterly earnings on Feb. 21.
View Full Article

Comments (0)

Be the first to comment!