Nvidia briefly overtook Amazon in market capitalization, fueled by a spike in interest in artificial intelligence.
LSEG data reported by Reuters claimed the chipmaker hit an all-time high of $734.96 per share, giving it a market value of $1.82 trillion, surpassing Amazon’s $1.81 trillion.
Nvidia has now returned to the fifth position among the most valuable companies in the US, behind Microsoft, Apple, Alphabet (Google) and Amazon.
Is Nvidia worth more than Amazon?
With Nvidia stock up 231.6% over the past year and Amazon stock up a less impressive (but still very healthy) 73.1%, Nvidia could soon overtake the Seattle-based company permanently.
This achievement marks the first time in more than two decades that Nvidia has surpassed Amazon, when they were both worth less than $6 billion in 2002.
With Amazon reporting better-than-expected sales last month, investors are waiting for Nvidia to report its latest quarterly earnings on February 21, thanks to a successful holiday season.
Nvidia has positioned itself as a major player in supplying components to technology companies focused on generative AI. But with companies like Google, Amazon and Meta all exploring their own chips, Nvidia’s success is still being felt.
Elsewhere in the technology landscape, Microsoft last month surpassed Apple as the world’s most valuable company, becoming the second company to reach a market value of more than $3 trillion. Today, Apple sits below that $3 trillion threshold, having reached the momentous figure in June 2023.
As the AI boom continues, Nvidia’s significant market share highlights the growing importance of technology companies in their contribution to the overall global economy, as well as the immense growth potential for companies dealing with aspects of AI.