The surge in Nvidia's stock performance underscores the growing enthusiasm for AI, which is driving up stock prices. Nvidia's chips, which power the AI systems behind the world's ChatGPTs and Geminis, are being purchased by tech companies in large quantities, contributing to billions of dollars in sales. The company's revenue more than tripled in the three months ending Oct. 29, compared to the same period in 2022. Nvidia's shares have increased by 46% so far this year.
Key takeaways:
- Nvidia, the AI chipmaker, has surpassed Amazon in market value, becoming the fourth most valuable American company with a valuation of $1.82 trillion.
- The last time Nvidia was more valuable than Amazon was in 2002, when both companies were worth under $6 billion.
- Nvidia's stock performance has been boosted by the enthusiasm for AI, with their chips powering AI systems worldwide and tech companies buying their chips in large quantities.
- In the three months ending Oct. 29, Nvidia's revenue more than tripled from the same period in 2022, and their shares are up 46% so far this year.